Openmind
Well-Known Member
and just means you have to borrow more to fund them bit like Greece.
yup. The more they pay me the quicker I spend it
That's because you are still in the "meeting my need" category! And this reinforce what I am saying: If you provide additional money (let's say, through reducing taxes) to the lower or middle income, that money will be SPENT immediately, and the velocity of that money will be HIGH. If you give tax breaks to the wealthy, that money will be saved or spent all over the world. . .not at the Lowes' or Home Depots to buy a new fridge, or at Ford garage to buy a new small car. . .but rather at Cartier to buy a new diamond, or at Mercedes to buy a new FOREIGN car!
It is obvious that, if you give $1,000 tax break to a lower income person, he/she might use it immediately as a down payment (let's say) on a new car. . .not a Mercedes, but a small ford or such. If you give that to 100 lower income people. . .that may translate in 100 more small cars, build in the USA. Now, give $100,000 tax break to a guy in the top 1%, and he MAY use it to buy a car also. . .maybe a German Mercedes, maybe a Ferrari, maybe even a small yacht (built in Italy, of course!)
And. .it takes A LOT MORE labor to build 100 small ford than it does to build 1 mercedes (even if it was build in the US). So, that ONE big item ticket doesn't provide as much labor/work for people in America than the multiple smaller item tickets!
The wealthy, those who are just hoarding money, do not "spend" but a small fraction of their wealth. And what they spend, is more often spend ABROAD (why not, so much more fun to take the private jet and fly to Paris to shop, rather than the train to NY City!, or take a world cruise and spread money around, rather than go to the beach at home or take the kids to Disneyland!).
Yes, they also INVEST. . .but they no longer invest INSIDE America. . .they invest abroad! They are buying castles in France, golf courses in Scotland, and set up manufacturing in Taiwan or the Philippines! Yes, they still buy stock. . .but the stock market no longer reflect the health of an industry. . .it is only a reflection of the health of investment. . .for the good of investment, for dividends, not to provide jobs to American workers! In fact, stocks usually go UP when corporations lay off large number of workers!
Sick!
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