Spending money affects someone. Whether you spend one dollar, one million, or one billion dollars, money can create cash flow and jobs. The exchange of goods, and services, and the movement of money drive the economy. Consumer spending is restricted when credit is too costly, particularly for large purchases. This is evident in the current credit crisis. It can be devastating for all businesses that are connected to these products if consumers have limited credit options.
We all gain when businesses succeed. One business might need a shipper or supplier, a printing company, or other services. These businesses, along with their employees, and the local economy, all benefit. This could be a 250-500 employee company in Anytown USA. These employees will go to lunch, purchase gas for their cars, and shop in the local shops near work. It has a positive effect on the local economy. It is vital to drive the economy by spending money. This is why every news channel in the country reports the year-end holiday sales figures. It affects every business that makes, sells, or repairs these products. Businesses that don’t make enough profits will lay off workers. Less money means more job losses and less money spent. Many businesses depend on one another for their survival.
Let’s suppose that a large company does business alongside several hundred businesses like Wal-Mart and General Motors. Think about all the employees and all the products and services that they purchase. While it can do great things for the economy and can be a good thing, if a large amount of the money flows stop, then big problems could occur just like what is happening to our economy right now.
Let’s now take a look at wealthy people and how they affect trickle-down. Everyone benefits when someone spends money. One wealthy person may own a business or several businesses and have a Number of employees. These employees pay taxes, spend money on necessary expenses, and someone else gets their income from the money.
This rich man may also own a few homes. When he purchases a house or a car, more taxes are paid and income is earned. How about the maintenance of his house and cars? Paint, flooring, cleaning, and carpet cleaning, as well as housekeeping and maintenance of cars and autos, such as car mechanics, car washes, and tires. This list could go on. I don’t believe anyone should be upset if the rich get wealthier. They are more likely to spend more and have a positive financial effect. Companies that provide financial support to their wealthy and the people who work for them get a benefit. In turn, they can employ other people who spend money and pay taxes. A wealthy person redistributes wealth automatically every time he spends money.
Wealth creation is why most people get a job. People start companies. They don’t just happen. The wealth is gone and perhaps the rich guy starts another company or allows someone to start his own business. This cycle of trickle-down continues, so thanks to the rich guy you have a job. Everywhere you spend money, someone is earning money. You are also supporting a job or a business. Spending money is good for the economy.
Everyone benefits when they spend more. TRICKLE DOWN TRICKLES DOWN. It’s an economic fact that money flows from the top to bottom, even though the rich get wealthier and the poor get poorer. Businesses in an area have employees that spend money on food and housing as well as transportation and entertainment. Think about how big businesses can increase income for smaller businesses in the area. Businesses do business together and this improves economic conditions for all. So spend money.