Quote:
Originally Posted by Lamplighter
Adak, once again you have diverted off to talking about "wealth", "goal", "taxes" etc.
That's either a debating tactic, denial, habit, O/C, or whatever ?
We started with Pelosi's comment about food stamps being a stimulus to the economy.
It's very simple...
When $ is spent on food in a local food store, it is income to the store.
When the store has income, it spends $ on employees, supplies, advertising, maintenance, and profit to the owners.
When people don't have $ to spend in the local food store, the store goes out of business.
That is the local economy.
When the government gives low income people $ 1.00, they spend it in the food store,
and it's employees and suppliers and advertising firms and contractors
and investors, each in turn spends portions of that $1 generating the $ 1.84 in the other expenditures.
That is the stimulus to both the (local and national)economy.
So, Pelosi was right... Right ?
|
It would be IF the dollar being spent, was a dollar that wasn't simply printed up by the feds, out of nothing but fancy paper and inks.
Take it a step further and see where it leads: The gov't decides it's a stimulus to the economy, and we definitely need a stimulus, so they give everyone food stamps, and lots of them.
The problem is, there is no more wealth added to the economy to support it. So our dollar goes into free fall, as inflation flies through the roof.
Almost every gov't does a bit of this, because they know that normally, there IS some wealth being added to their economy, year by year. In our case, we've overdone it, causing our dollar to sink in value, year after year.