Air Ideal Gas At A Flow Rate Of 09 The Economy, Credit and Trickle Down Economics (The Ripple Effect)

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The Economy, Credit and Trickle Down Economics (The Ripple Effect)

When people spend money, someone is affected. Whether you spend a dollar or a million, spending money creates cash flow, cash flow creates jobs. An economy is driven by the exchange of goods and services and the movement of money. Money is also a product, when credit is very expensive in the form of high rates and fees, consumer spending is limited, especially for large purchases. The current credit crisis is an example. When consumer choices are limited due to unavailability of credit for large purchases, it can have a devastating effect on all types of businesses associated with those products. When a business succeeds, we all benefit. A particular business may need a supplier or shipper, a printing company or any other business services. All those businesses benefit, as well as their employees and the local economy where that business is located. An example of this is a company in Anytown USA with 250 or 500 or whatever employees. When those employees go to lunch, buy gas for their car, shop at the local store near work, etc. It has a positive impact on the local economy. Spending money is critical to stimulating the economy, which is why every news outlet in the country reports on holiday sales figures at the end of the year. Because it affects every business that manufactures, ships, sells, repairs, cleans, installs or advertises those products. If businesses don’t make enough profit, they lay off workers, fewer workers means less money spent, and in turn more jobs are lost. Many types of businesses depend on each other for survival. Suppose a very large company does business with many other businesses, such as Wal-Mart or General Motors. Now, think of all those employees and all the different products and services they spend their money on. This can only do good things for the economy, however, if any large portion of the money flow stops, it can cause major problems, like the problems our economy is currently facing.

Now let’s take a look at wealth and its effects on decline. Anyone who spends money, rich or poor or in between, benefits, but let’s look at it from the top down. Some wealthy individuals own their own business or multiple businesses and are employed XPopulation. Those employees pay taxes and spend money for all the necessary expenses of life and someone earns their income from that money. Also this rich person may own a house or two or three, and when he buys a house or a car, the money exchange results in more taxes being paid and income etc. What about the maintenance of his house and cars? Painting, Roofing, Carpet Cleaning and Floor Care, Home Maintenance and Car Auto Mechanic, Car Wash, Tires. The list goes on and on, so I don’t think anyone should be offended when the rich get richer, because they are more likely to spend more of it and have a positive economic impact. All companies that help maintain their assets and the people who work for them get benefits and in turn employ others who spend money and pay taxes. Therefore, a rich person automatically redistributes wealth every time he spends money. Wealth creation is the reason most people have a job in the first place. Companies don’t start out of thin air, they are started and run by people, and if they are successful companies, someone has gotten rich from it. That wealth is spent and maybe that rich person decides to start another company or allows someone else to start their own business and the cycle of trickle down starts again, so thank some rich person that you have a job. Everywhere you spend your money, someone is making money and you’re supporting jobs and businesses. The economy works better when we spend money, the more we spend the more everyone benefits. Trickle down trickles down. It is an economic truth that even if the rich get richer and the poor get poorer, money flows from the top down. If there is a business in an area, it has employees who spend money on food, accommodation, transportation, entertainment and many other things. So consider the benefits of increasing the income of a large business to many other small businesses nearby. Many businesses do business with each other and this improves everyone’s financial situation, so spend some money.

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