There was some discussion a while back about the government taxing inheritances more, so that money would not remain idle in the rich kid's trust fund. The attached article explains what capital is. This understanding can then be applied to money sitting in a bank or in a trust fund, or any other kind of fund. All of that money is invested in purchasing capital. Without capital we are all poor dirt farmers. So taking money from rich kids to give to poorer people reduces capital available, which makes everyone poorer as a result. What Is Capital? | Claude Frédéric Bastiat
Bookmarked for later, thanks. I recently bought Bastiat’s The Law which is also in my Mises reading queue.
The "idle money" rap is just an excuse to tax people harder, so government can spend more. It's somewhat of an extension of the Keynesian myth (or more precisely, a myth that Keynes-centric politicians and fraudster economists exploit even though Keynes didn't always endorse it) that money being spent is always a good thing.
Yes, it is a widespread and widely accepted lie that the economy is dependent on consumption. Just about everything central banks and governments do monetarily is to stimulate spending. It eats capital which eats away the future.
