“We admit that we doubted the zimbabweconomists who said “this will work, trust us, we’ve never been wrong theoretically,” but the wealth effect is working. We feel GREAT. More importantly, we feel rich. So much so that we are using a new word to describe our riches — wealth. And all that wealth burning a hole in our pocket? What’s a mini-baller¹ to do? Spend spend spend spend spend. We are spending 5x more than we normally would thanks to our new permanently elevated levels of riches, our new so-called wealth. And that spending has begot job creation in the economy. Last week, feeling flush with nouveau wealth, I personally spent $40k to buy windows and $10k to hire homeless people to break those windows in a sort of informal mad-dash shopping-for-dollars-cum-breaking-windows competition. It was inspirational. This actually works — unemployment has never been lower according to current theory I think. The economy is growing at record levels (depending only on how you define these words: “economy,” “growing,” “record,” and “is”).”
- From ‘Long the wealth effect’ by Long or Short Capital.
¹Baller: A thug that has "made it" to the big time. Originally referred to ball players that made it out of the streets to make millions as a pro ball player, but now is used to describe any thug that is living large.
Usually male, a mini-baller is single, aged 22-30, and has a six-figure income.
He tries to be a "baller" but can't quite afford it. He lives a
"mini-baller lifestyle" which involves over-spending his large income
on weekend travel, expensive clothes, and alcohol. His life goal is to become a
regular "baller" but he usually doesn't get there.
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