HappySqurriel said:
numonex said:
mrstickball said:
numonex said:
Do you believe in trickle-down economics?
Well if you are a Boston Tea Party Republican then the answer would most likely be Yes! Tax rebates and tax cuts for the wealthy will supposedly be spent on capital infrastructure and the equity market which will create more jobs for the working class and middle class.
What if the wealthy elites kept their extra money in the bank and just sat back and did nothing?
In order for the government to justify more spending on infrastructure, They would have to increase tax rates. Capital threat by wealthy elites would set up shop overseas.
Either way you look at it reduce taxes too low or increase taxes too high, there is no real solution to a never ending problem. Catch 22.
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Here is a question for you, and only you, Numonex:
What happens when someone puts money in a bank. What happens to it? Please answer my question
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The money saved in the bank accumulates interest but it contributes nothing towards the economy. GDP is all based around spending and investment. More consumer spending the better the economy because the money is cycled through the perpetual cash flow system. America's economy focuses mainly on consumer spending to drive its economy and the world economy. Equity markets report the earnings of the companies and rely heavily on consumer spending.
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Money invested in a bank account generally is used towards a banks capital requirements which tends to allow a bank to loan out (typically) 10 times as much money; and this money is typically used to purchase homes or consumer goods. For every dollar put into the bank it can have 10 times the impact on the economy as a dollar spent.
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Thank you.
When you put money in the bank, others use your money to get loans on cars, buy houses, start businesses and other such things. How else do you think someone earns interest?
