Do successful business people benefit others when making their money, when spending it, both, or neither?

Benefits of Wealth Creation

Absence of Benefit

Intersection of Wealth Creation and Expenditure

Benefits of Wealth Expenditure

By establishing businesses, they create jobs, foster innovation, and stimulate economic growth https://link.springer.com/chapter/10.1007/978-90-481-8840-6_2

However, the concept of trickle-down economics, which suggests that the wealth created by these business people eventually benefits all members of society, has been criticized for exacerbating income inequality https://link.springer.com/chapter/10.1007/978-90-481-8840-6_2

Philanthropy is a common avenue for this, with many business people donating large portions of their wealth to charitable causes https://www.cambridge.org/core/journals/journal-of-financial-literacy-and-wellbeing/article/importance-of-financial-literacy-and-its-impact-on-financial-wellbeing/A5DBBF9D6F0696E5FD3733241EE28E66

Additionally, some business people reinvest their profits into beneficial projects, further contributing to societal well-being https://academic.oup.com/book/8706/chapter-abstract/154727249?redirectedFrom=fulltext

Some businesses operate with social missions, aiming to address societal issues through their products or services https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

Exploitation is another concern, with some businesses profiting at the expense of their workers or the environment. https://link.springer.com/article/10.1057/s41302-021-00191-x

This aligns with the theory that economic wealth is created through a social division of labor https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

years, suggests that productive tasks are spread out among a multitude of individuals, who achieve collectively a higher output than when all of them remain non-specialized. https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

Thus, wealth generation is founded on "Increasing Returns to Specialisation" https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

The theory states that tax breaks or benefits for businesses and the wealthy will benefit poorer members of society by improving the economy as a whole https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

But some studies suggest that the wealth gap has been widening, with the rich getting richer while the poor get poorer

This aligns with the Keynesian economic theory, which posits that government intervention can stabilize the economy https://www.investopedia.com/terms/k/keynesianeconomics.asp

Moreover, business people also contribute to society through investments in community projects and consumption that supports other businesses https://scholar.harvard.edu/files/kdynan/files/1._wealth_effects_and_macroeconomic_dynamics.pdf

This is in line with the wealth effects and macroeconomic dynamics theory, which suggests that fluctuations in household wealth have driven major swings in economic activity both in the United States and abroad https://scholar.harvard.edu/files/kdynan/files/1._wealth_effects_and_macroeconomic_dynamics.pdf

This aligns with the theory of social entrepreneurship, which posits that businesses can be both profitable and beneficial to society. These businesses often focus on creating social value, such as improving education or healthcare, reducing poverty, or protecting the environment https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

This is in line with the theory of corporate social responsibility (CSR), which suggests that businesses have an obligation to act in ways that benefit society. CSR can take many forms, including ethical labor practices, environmental sustainability, and philanthropy https://link.springer.com/chapter/10.1057/978-1-137-56825-0_12

however, some argue that businesses should focus solely on maximizing shareholder value, and that other societal concerns are the responsibility of the government and non-profit sector https://link.springer.com/chapter/10.1057/978-1-137-56825-0_12

Wealth inequality is a significant issue, with the rich getting richer while the poor get poorer. This aligns with the criticism of neoclassical economic thought, which often assumes perfect competition and rational behavior, overlooking the realities of wealth inequality https://link.springer.com/chapter/10.1057/978-1-137-56825-0_12

Marxist critique of capitalism, which posits that the capitalist system inherently leads to the exploitation of workers https://link.springer.com/chapter/10.1007/978-981-15-4116-2_2

Unethical business practices, such as tax evasion and corruption, also negate any potential benefits from wealth creation or expenditure. https://link.springer.com/chapter/10.1007/978-981-15-4116-2_1

These practices not only harm society but also undermine the principles of economic wealth creation. https://link.springer.com/chapter/10.1007/978-3-319-76397-2_1

example: ford

things to be aware:

be careful for rich people vs business people

be specific with mechanisms