Comment Re:Only a couple of problems with that. (Score 1) 681
p>OK, there is a point in that while both the poor and rich person are saving (roughly) equally less as a % of their income, the rich person may now be investing relatively more (a poor person who previously saved 3% of his income now saves nothing, while a rich person saving 10% now saves 6%: 3:10 vs 0:6). The rich person thus is able to make a return on that 6% while the poor person gets no return.
You answered your own question right there. Marginal propensity to spend/marginal propensity to save & compounding interest.