Investment is a loaded phrase because it can mean a lot.

Where are the 1% most likely going to invest to maximize profits? More likely with stocks or areas with a higher yield. Sticking with coffee, very unlikely that they will invest in the shop down the road. More likely in Starbucks. Yet franchises actually slowly siphon out the local economy. Unless there is a means to bring wealth back in the community, it will slowly die.

When was the last time you saw Starbucks investing in the community, such as helping finance / sponsor the local boys and girls baseball teams? Would it be more likely that local coffee house or business will be doing just that versus Tesla? Is that not an economical investment, one in the community, where the local food truck can benefit from those local baseball games?

This weekend I dined at a restaurant where the bartender was living out of his car for a portion of his life. Talking with him I also found out, he is going to school for botany. Turns out he taught himself how to grow and maintain exotic plants. Going there and tipping is an investment in him and those around him in my community. A social economic investment as such is very unlike going to be from 1% wealthy that are looking an a pure financial gain.

An unbalanced economy where the wealth are very top heavy prevents local investments. For example, lets say the taxation is cut for them and thus needs to cut funding for Mental Health Facilities. That reduced the probability to invest in people that could be assisted in becoming a more stable part of society. Doesn't a dramatic cut in education speeding reduce the ability for a more talent pool of people in the community? This type of investment must be long term and equivalent to R&D in a company. It does not pay off right away but done the road it has a high potential.

Economic abuse can be exacerbated by large economic inequality. Take a bank, turns out that there are 100 deposits in the bank to fund the loans departments. One person's account contains 90% of all funds. Now that one person closes their account and the bank becomes defunct and all others loose. With enough wealth people can concluding to make this happen. Lets conclude to invest in a bank, that has stock in the market, though deposits. We become over 60% of the loan department. We wait a while and then start shorting the bank stock. Pull our money out and make money on other people misery. Where a well balanced economy would prevent this ability and create a more long term stable economy.

Fraud is part of every Government and society. Some people just want to make as much money as possible as soon as possible. No matter how big or small the community is. Decent firewalls need to be put into place to prevent it and forensic accounts needs to be deployed to find it. Fraud is crime, is it not? Where does most crime take place? Probability states in larger populations such as California and Texas versus smaller ones such as Maine and Wyoming. Based of probability, wouldn't most fraud be from the more affluent individuals?

Look at Toyota vs Ferrari. Ferrari is priced for the rich and has the highest margin per vehicle between the two. Toyota is priced for the non-rich, produces the most cars, employees more people directly, and has more manufactures. Toyota is more of a driving force for the economy though initial sales and second hand market than Ferrari. Driving force of any economy is not dictated by the wealthy but by everyone else. Coffee is no different. 1% cannot economically support that coffee shop, it is the community with spending power that can.

*Fixed wording.