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chromacitytoday at 2:04 AM1 replyview on HN

That kind of money, even if it goes to a single person, doesn't get taken out of the economy. No one puts it under the mattress. It's invested, so it's basically given to other people in exchange for a promise of equity / future returns.

It might not be the allocation of capital we like, but it doesn't disappear.


Replies

gnatolftoday at 5:16 AM

Well, there is a financial 'sink' - stockpiles and ammunition or other non-reusable military gear are basically the definition of money 'destroyed'. Their political value is almost non-existent actual money. If any, at all.