Quote:
Originally posted by Mojo_PeiPei
Poor person would spend the money no doubt, but the only way they would further benefit the economy is by their cigarette addiction or booze. By saying that I am in no way asserting all "poor people" are black death smoking cancer heads or booze hounds, I'm just saying that food to my knowledge is not taxed, what else are they going to spend it on that will generate revenue?
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You seem to be confusing generating tax revenue with contributing to the economy. Food, utilities, shelter, gas, entertainment and every other thing that a citizen buys in our society contributes to the economy. Consumer spending, commonly cited as the primary driver of the economy, does not just mean luxury items.
It seems to be conventional wisdom that more money for the richest citizens means more economic investment. Following that line of thinking, does it not also stand to reason that increased spending by the lower echelons of society would drive up profits, thereby providing the invesment sector with more capitol?