The Rich Are So Rich They’re Not Sure How to Spend Excess Money

How rich do you have to be before you have so much money that you, as Axios puts it, “literally don’t know what to do with it”? It seems like a joke, but the financial windfalls for the top 1 percent in this country lately have been so extreme that the wealthy aren’t even sure to do with the extra cash – so they’re sitting on it.

In 2018, U.S. corporations netted $2.3 trillion in profits, and the country’s total wealth jumped by $6 trillion. That sounds like great news for our economy, except that most of that money went to the very rich.

Worse yet, you’d hope corporations earning record profits would choose to reinvest in their businesses by giving raises and benefits or maybe hiring more employees, but that’s not what’s occurring. Capitalists keeps promising the American people that with enough money, companies will take care of the working class, but yet again we’re seeing that’s an empty pledge.

So where is all that money going? Nowhere, for the most part. A good portion of it is being used on stock buybacks to pay off investors, but that means basically nothing to most Americans who aren’t tied to the stock market.

Instead, corporate cash holdings – aka money that’s just sitting in standard accounts earning a trivial rate of interest – are nearly $3 trillion, which is another record.

Wealthy (top 1 percent) households are in the same boat. They’re holding on to – again a record – $304 billion in un-invested money. As a point of comparison, Axios reminds us that untouched cash before the financial crash of 2008 was just $15 billion. Everyone’s just sitting on their dough nowadays.

Wonkette astutely called out the situation as “hoarding” money. Trickle down economics has proven itself a failure time and time again, but in our current scenario, the money isn’t even pretending to trickle down. How in the world does the bottom 99 percent benefit from or share in money sitting unused in bank accounts?

As for how we got into the situation in the first place, Axios points its figurative fingers at the right targets: Trump’s corporate tax cuts, the Federal Reserve allowing companies to borrow money for almost nothing thus allowing them to boost revenue, and a growing global economy that affords companies the ability to hire cheaper labor abroad.

To that last point, Americans are losing jobs and they’re not even getting a share of the corporate savings. It’s equally as sad to realize that Trump’s tax cuts haven’t benefited the economy, they’ve just enriched the very people who have so much money that they’re not even sure what to do with it.

Take Action!

This country obviously needs a solution to this hoarded wealth problem, and Senator Elizabeth Warren might have it. Her Ultra-Millionaire Tax plan makes the richest of the rich pay a 1.1 percent increase in taxes on their accumulated wealth over $50 million. That’ll help get more cash flowing, at any rate. To support this plan, sign this Care2 petition!

43 comments

Margarita P
Margarita P9 days ago

This is so weird! I guess it is the opposite of the situation of people who say winning the lottery was a curse, because within a few years they were broke again & in more debt than they had before. If I won the lottery, I wouldn't have either of these problems, as long as I had control of the money. I am not good at earning money, but under favorable circumstances I can hold on to it. The only thing that might wipe me out financially after I won the lottery would be medical bills.

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Paulo R
Paulo Reeson10 days ago

disgusting

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Steven W
Steven W10 days ago

Thank you.

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Peggy B
Peggy B10 days ago

TYFS

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Callie R
Callie R11 days ago

Poor, greedy bastards, I feel so sorry for them.

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Veronica Danie
Veronica Danie11 days ago

Thank you so very much.

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Veronica Danie
Veronica Danie11 days ago

Thank you so very much.

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Veronica Danie
Veronica Danie11 days ago

Thank you so very much.

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Laura R
Laura R11 days ago

Thank you.

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Leo C
Leo Custer11 days ago

Thank you for sharing!

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