Revive the economy by reducing management salaries, reducing...

  1. 9,286 Posts.
    Revive the economy by reducing management salaries, reducing dividend payout ratios by around 20% and pay workers more.

    When the division of wealth between the rich and joe average becomes too much, economic activity suffers.

    The trickle down theory is non-sense.

    For example, if I am wealthy and acquire more wealth what do I do with it? Buy a country property or two or some rental properties? This does not add to economic activity.

    There is a point where there becomes too much wealth in the hands of too few and thus that wealth does not get spent or recycled.

    Whereas CBA, WBC, NBA, ANZ, TLS, AMP, etc, these companies that employ so many people; if these companies cut their dividends by 20% and paid them to the workers, the workers who actually spend that money rather than horde it.
 
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