BrianW
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- Joined
- 6 Mar 2006
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- There's Only One City
It isn't straightforward, but generally, if you want to boost the economy quickly the best way is to give more money to the low-paid and benefit claimants. These people have what is called a high propensity to spend. That is they spend almost every penny they receive and that money goes to businesses and circulates in the economy. Some of it gets back to the state as tax. Yes, not least through duties on alcohol, tobacco and petrol.
Give money to the rich, especially the uber-rich, and they will spend little if any of it. Instead, they will 'invest' it, often in tax avoidance schemes. This means the government gets little back if anything at all. There might, ideally, be a long-term benefit to companies via increased investment but it is not guaranteed and is in any case long-term. In the long term, we are all dead.
Give money to the rich, especially the uber-rich, and they will spend little if any of it. Instead, they will 'invest' it, often in tax avoidance schemes. This means the government gets little back if anything at all. There might, ideally, be a long-term benefit to companies via increased investment but it is not guaranteed and is in any case long-term. In the long term, we are all dead.