The analysis of good and bad effects of business people’s money-making and money-spending activities

Abstract

There is no doubt that the money-making and money-spending activities of successful business people have a positive impact on society. Firstly, the rich alleviate the wealth gap and promote income equity through wealth distribution mechanisms such as taxation and charitable donations. Secondly, the rich promote economic development by accelerating money circulation and boosting employment through investment and consumption. Besides, business operations and charitable consumption by the rich can increase the supply of public goods and improve social welfare. However, there are also some adverse effects, such as the Matthew effect widening the gap between rich and poor, the exploitation and oppression of workers by capitalists, and the negative externalities of business people’s economic activities. This paper proposes some policy recommendations to address these challenges.