First, poor have lower savings rate, and consume faster, so money velocity is higher. Second, minimal wages are local, and I would imagine that poor people on average spend a bigger fraction of their consumption locally (but I am not as certain about this one).
Remember that I’m not interested in evidence here, this post is just about what the theoretical analysis says :)
In an economy where the relative wealth of rich and poor people is constant, poor people and rich people both have consumption equal to their income.
First, poor have lower savings rate, and consume faster, so money velocity is higher. Second, minimal wages are local, and I would imagine that poor people on average spend a bigger fraction of their consumption locally (but I am not as certain about this one).
Don’t rich people tend to die with a significant portion of their lifetime income unspent, while poor people don’t?