Economic Stimulation


Why do we incent the rich by giving them tax breaks (more money in their pockets) and we incent the poor by taking government support away from them (less money in their pockets).

If you agree that consumers drive the American economy, would it not make more sense to give money to the poor to buy goods they do not already own?

If you agree that more businesses make for a stronger economy, wouldn’t it also make sense to reduce the money given to rich people to incent them to start more businesses in order to make up for the money they are losing?

To say this differently, why would a rich person -with new and increased wealth- start a business knowing that the middle class and the poor will have less buying power going forward?

If we increase money in the pockets of the poor and middle class this will cause them to spend money on goods and services. It also appears that if wealthy people value more money in their pockets, then they will create more businesses to obtain the new dollars in a poor person’s pocket. These two actions will create more production in goods and services  -which results in  more jobs- and will increase the number of businesses pursuing the income of the group with new jobs. (A rising tide floats all boats…)

How is that thinking wrong? Just asking the question…

 

Author: Reasonable Citizen

Reserved, inquisitive, looks before leaping, www.reasonablecitizen.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s