The Japanese Market is collapsing

[Final-Fan]

kenzomatic said:

Kasz216 said:

kenzomatic said:

Final-Fan said:
Right, but look at it this way: If a rich person/business owner gets money, SOME of that goes to poor people/employees. If a poor person gets it, it ALL goes to poor people. There's no way around that. (BTW, I wonder whether both of our oversimplifications are getting to the point that they're losing real-world significance.)

Yes it is losing significance because poor people don't create jobs. And more over you have not defined this "poor people class" or whether or not we're talking tax cuts or welfare or socialism.

You can't give tax cuts to people in poverty as there's no tax taken.

Poor people pretty much have to spend money. The Money the spend goes to buisnesses. The Buisnesses with more money create new jobs.

There is a reason why even President Bush's economic stimulis program is to give money to the people to spend, and not give money to buisnesses.

Yes I do understand Keynesian economics and I was overstating and over simplifying. But giving the money to business does has a more immediate effect.

Plus do you know how long it take for it to have an effect on luxary items when you give it to the poor, that is a big part of the economy.

Well I guess the immediacy of the effect depends on which effect you're talking about, or from whose point of view.  If you mean from the businesses' point of view, then yeah, the small wait for poor people to spend the money is still longer than the money going straight to them.