I just wanted to hear some opinions on this. I heard the analogy and it rang true but I'm not sure if it's one of those things that sounds good but upon closer inspection is either too simplistic or outright false.
Thoughts?
Money is like candles not cakes.
You go into a restaurant and sit at a table with everyone else. Cake is cut up and served to everyone. You decide you want more cake, so you go around and take a little bit from each of the others plates. Now you have more, but they have less.
This is not how our economy works. It's more analogous to candles. You walk in to the same restaurant with a bunch of unlit candles. Everyone else has lit candles on their table. You go to each and light one of your candles from their flame. They still have their candles, but you've used it to increase your own. Not only that, but you've increased the amount of heat, light and warmth in the room so everyone benefits.
Thoughts?