Is Britian Turning Into A Totalitarian State ?

[SamuelRSmith]

@Slimebeast

I gave up reading the article because of the poor translation. Though, I must ask, does it include the multiplier effect?

The multiplier effect basically works out the net wealth generated from spending.

Basically, when immigrants take $40bn Sweden doesn't lose $40bn, because that money hasn't gone anywhere. The immigrants may spend, I dunno, 40% of that money in shops - $16bn, assuming VAT is 15%, that means that the Government will see $2.4bn back in their pockets immediately. But, it doesn't stop there.

The shops now have experienced an increase in revenue of $13.6bn ($16bn - $2.4bn) which they will need to spend on buying new goods (which increases demand, so the other firms will have to increase output, resulting in higher employment which means more people will be able to spend again in stores. The Government, of course, will be making more money through corporation taxation and income taxation on the newly employed (and, as a result, more VAT as the newly employed will be spending more).

As you can see, this keeps going around and around, producing more and more economic growth.

And what about the 60% of the immigrants money that isn't spent? This money could be put into a bank - the banks will then invest this money. Increased investment being the key ingredient for sustainable economic growth.

Of course more things can happen to the money, but I just kept it to the two simple spending and saving scenarios.