Many economists will admit that economics is the "Dismal Science." Why? Because there are unaccounted-for variables. That said, the Multiplier Effect is science, thus real. In other words, when you spend money on ANYTHING, that goes through the economy and becomes worth more than the original amount of money many times over, to the benefit of all. The Democrats/Progressives recognize this reality, but the conservatives/Republicans/MAGA don't. That is why it is wrong for wealth to pool at the top of society unspent when EVERYONE benefits more when the middle and lower classes get more money because they SPEND more of their wealth.
Showing posts with label The Multiplier Effect. Show all posts
Showing posts with label The Multiplier Effect. Show all posts
Sunday, September 29, 2024
Sunday, April 9, 2023
What Conservatives Fail To Understand About Government Expenditures
" - - - a change in aggregate expenditures circles through the economy: households buy from firms, firms pay workers and suppliers, workers and suppliers buy goods from other firms, those firms pay their workers and suppliers, and so on. In this way, the original change in aggregate expenditures is actually spent more than once. This is called the expenditure multiplier effect: an initial increase in spending, cycles repeatedly through the economy and has a larger impact than the initial dollar amount spent."
Click on the link below for a basic economic lesson:
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