When politically motivated economists write research papers! Usually, it is the myth of trickle down economy!
In this latest paper, three economists proclaim a phony hypothesis of the trickle up "to the richest savers with the lowest MPCs [marginal propensity to consume], raising wealth inequality".
One obvious and glaring flaw with this study is that perhaps the single-minded focus on MPC [marginal propensity to consume] of rich people is much lower, however, they spend their money on real estate, art, yachts, all kinds of investments etc! These expenditures create jobs, new products, pay taxes etc.
Please note that government failure like massive trillion dollar deficit-financed fiscal transfers started the process!
From the abstract:
"We provide a simple framework connecting the distribution of excess savings across households to the dynamics of aggregate demand. Deficit-financed fiscal transfers generate excess savings. The poorest households with the highest MPCs spend down their excess savings the fastest, increasing other households’ incomes and their excess savings. This leads to a long-lasting increase in aggregate demand until, ultimately, excess savings have “trickled up” to the richest savers with the lowest MPCs, raising wealth inequality."
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