When people spend money, someone is performed. If you spend a dollar or a million, the expenditure of money creates the cash flow, the cash flow creates jobs. The economy is driven by the exchange of goods and services and the movement of money. Even money is a product, where the credit is too expensive, in the form of higher rates and taxes, consumer spending is limited, especially for large purchases. The current credit crisis is an example of this. When consumer choices are limited because of the credit it is not available for larger purchases you can have a devastating effect on all kinds of businesses relating to these products. When we can all benefit business. A particular activity may need a supplier or agent, printing company, or any number of other business services. All those companies benefit, as well as their employees and the local economy where such activity is located. An example of this is a company with 250 or 500 or any number of employees in the USA Anytown. When those employees go to lunch, buy gas for their car, shop in local stores near your work etc. has a positive impact on the local economy. Spending money is extremely important to drive the economy, this is why every station in the country news reports on year end holiday sales figures. Because it makes every company that manufactures, ships, sells, repairs, cleans, installs, or advertise these products. If businesses do not make enough profit, they will lay off workers, fewer workers means less money is spent and, in turn, more jobs lost. Many different types of businesses rely on each other to survive. Let's say that a big company does business with several hundred other companies, such as Wal-Mart or General Motors. Now, think of all the employees and all the different products and services they spend their money on. You can only do good things for the economy, if any large part of the cash flow stops, well, there may be big problems, just like the problems that our economy is facing today.
Now we take a look at the rich and their effect on the trickle down. If a person, rich or poor, or anyone among spends money, it benefits someone, but let's look at it from top to bottom. Some rich person owns their own business or multiple businesses and takes X number of people. The employees pay taxes and spend money for all the living expenses necessary and someone else earns their income from that money. Even this rich guy can own a house or two or three, and when buying a house or a car, more taxes paid money exchanges hands and income from employment and so on. What about maintenance on her house and car? Painting, roofing, carpet cleaning and floor care, maintaining the house and for the mechanical auto car, car wash, tires. The list goes on and on, so I really do not think anyone should be upset when the rich get richer, because they are more likely to spend more of it and have a positive financial impact. All companies that help keep their assets and the people who work for them to receive a benefit and, in turn employ others who also spend money and pay taxes. So a rich person automatically redistributes wealth whenever you spend money. The wealth creation is the reason why most people have a job, in the first place. Companies do not start from nothing, are started and run by people, and if they are successful companies, someone could have become rich because of it. That wealth is spent and perhaps rich guy decides to start another company or allow someone else to start their own business and the trickle down cycle starts all over again, so thanks a rich guy to the fact that they even have a workplace. All the places to spend your money, someone is making money and you are supporting a job and business. The economy works well when we spend money, the more we spend benefits the most. FA trickle down trickle down. It is an economic fact, even if the rich get richer and the poor get poorer, the money still flows from the top down. If an area has companies, employees who spend money for food, housing, transportation, entertainment and many other things. So think about the benefits of big business income improvement for many other small neighboring businesses. Many companies do business with each other and this improves the economic situation for everyone, so go spend some money.
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