A transfer from luxuries might correct a social imbalance, but a transfer from investments to basic goods and services might have a negative impact on the overall health of the economy.
Also, many 'luxuries' are things that eventually become things we need (Tesla Motors?).
Having said that, I Am Not An Economist, so it's possible I Know Nothing.
Increased demand for basic goods and services increases the expected yield of investments in areas related to producing and selling those goods, and therefore would be expected to increase investment in that area.
Also, many 'luxuries' are things that eventually become things we need (Tesla Motors?).
Having said that, I Am Not An Economist, so it's possible I Know Nothing.