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4thTimeLucky · 05-12-2003, 10:21 AM

Good economic lessons by both Liquor Dealer and maximusveritas.

Whilst tax cuts are intended to work as Liquor describes, they often end up being scuppered by the phenomenon maximus eludes to. Give a poor man $100 and he will spend it all. Give a rich man $100 and it will accumulate interest in a bank.

One could equally use Liquor's argument to respond to the question "what do taxes do?"

It won't do much of anything. All it can do is take money out of (rich) people's bank accounts and use it on public spending, which requires the government to employ teachers and doctors, who need to be purchased equipment to work with and buildings to work in, which causes government to go out and buy things which causes the seller to have to replace that merchandise with more which puts more money into circulation because the money paid to the manufacturer is gong to be used to pay stockholders and employees and to buy raw materials which are used to make the product that is sold back to the store so someone can buy it and by doing so put money into circulation which is used to create jobs and ................

05-12-2003, 10:21 AM	#5 (permalink)
4thTimeLucky Psycho Location: 4th has left the building - goodbye folks	Good economic lessons by both Liquor Dealer and maximusveritas. Whilst tax cuts are intended to work as Liquor describes, they often end up being scuppered by the phenomenon maximus eludes to. Give a poor man $100 and he will spend it all. Give a rich man $100 and it will accumulate interest in a bank. One could equally use Liquor's argument to respond to the question "what do taxes do?" It won't do much of anything. All it can do is take money out of (rich) people's bank accounts and use it on public spending, which requires the government to employ teachers and doctors, who need to be purchased equipment to work with and buildings to work in, which causes government to go out and buy things which causes the seller to have to replace that merchandise with more which puts more money into circulation because the money paid to the manufacturer is gong to be used to pay stockholders and employees and to buy raw materials which are used to make the product that is sold back to the store so someone can buy it and by doing so put money into circulation which is used to create jobs and ................ __________________ I've been 4thTimeLucky, you've been great. Goodnight and God bless! Last edited by 4thTimeLucky; 05-12-2003 at 10:24 AM..