Is there a term for "wealth velocity" / how much an individuals economic activity generates in the economy? I'm wondering if the pyramid of "velocity" is inverted from wealth - does the bottom 99% owning very little move most of the liquidity in the economy?
Note: Am not economist. Am barely able to handle my own financial nonsense, just curious. Hope I might get some straightforward answers and links on how to educate myself on the topic.
Thinking about New York's pied-à-terre taxes, it was about "stagnant assets" (homes sitting empty - assets stagnant in the grand scheme of things).
Joe Smoe at the corner store's money comes in and goes out in about a week, nearly 100%.
Franklin P. Moneybags (1% or 0.001%, whatever) is sitting on twelve houses and cars, and whatnot. Assets and incoming just accrue. Some is "invested" to accrue more - but not actually "spent".
What percentage of Moneybag's money is actually "moving"? Is there a term for that? If he has a ton "on paper", that's effectively stagnant for my purposes... So does FPM actually "contribute" to the % of money moving around?
I'm just wondering if the "actually participates in the economy" is inverted as wealth is accumulated.