Jim, your analysis assumes a spending pattern of the wealthy not in evidence. To a large degree concentrated wealth is not loaned to an entrepreneur or spent on capital improvements like factory equipment, it is instead spent on ownership of existing wealth, the purchase of equities shares, real property, foreign markets. Venture capital in the U.S. has averaged about $40 billion a year since 2000, spiking up last year to around $100 billion last year, which is still a drop in the U.S. GDP bucket. I think I saw yesterday that in the order of $10 trillion (100 times more) of foreign capital was invested in U.S. equities and I suspect the domestic “investments” are of a similar or higher order. This makes perfect sense, given the investor priority to preserve capital, only a small portion of which is spent on higher risk ventures. Some enterprises do recapitalize by issuing new stock, but many are sitting on large capital reserves already and with relatively low interest rates it often makes more sense to retain control and profit share and even to buy shares back.