| theprof00 said:
2nd bold, I spend maybe 2 bucks a week on welfare if that. That money would likely go to buying a single ride on the train, or a pack of gum, or a soda. Instead, when it gets lumped into welfare, that 2 dollars becomes a 90$ pair of shoes for someone else, or a 300$ tv. My 2 dollars cannot support industries with products at a higher level than 2$, so, for example:e difference is that instead of giving the extra to the rich, we're giving it to a different class, who likely buys different items. |
What happens to that $2 (and for that matter a bunch of other 2 dollars from other people) once you've bought the gum?
The answer is... it gets bundled together... just how you'd have government do. The difference is... the company gives you gum. Governmet gives you nothing. GDP grows, because gum has been produced and you purchased it.
This is partially why the study you unknowingly cited, comes to the conclusion that government spending in general (not just welfare) is bound to cause a loss in GDP growth.
