How the Rich Help the Economy

Simply put, the rich help the economy by creating businesses, which provides jobs for society. By being prosperous, a business will gain more money, and with this money, they will expand themselves in order to make more money. While doing this, they create jobs for the public. And if they continue to prosper, they will be able to pay their employees more and will do so to obtain the best possible employees by outbidding the competing companies. This in turn will help set employee by increasing his salary, which will obviously help their financial life.

The next step in a growing company, after obtaining the most valuable employees, will be to improve their products, and make it better than their competitors in the industry. Again.. helping the economy.

The major reason that a country's economy grows is through technological advancements, so that they can use their resources more efficiently than before; in the ultimate goal to narrow the gap between the aggregate demand and the aggregate supply. (The consumers' wants of a good compared to the productions capability to produce set good at the desired price of the consumer)

Then, the business must be able to compete with prices, because no one will buy a product from a business if the quality is the same and the price is higher than another company's. Therefore, the business will lower their prices so they can increase their sales, and ultimately revenue.

This is an ongoing process, which is why the economy continues to grow.

Now, if the rich, the business owners, are to be taxed more heavily than everyone else, this process will be slowed down because they won't be able to afford it, and our economy won't grow as fast, and ultimately suffer. Then there will not be as many jobs, and the average salary won't be as high.