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Started By
Message
What is the economic impact of dropping bags of cash?
Posted on 11/16/14 at 8:05 pm
Posted on 11/16/14 at 8:05 pm
Let's say the state decided to drop $100 million in bags of cash on "disadvantaged" neighborhoods.
People would get the cash and spend it. Some of it would be spent online on out-of-state businesses but most of it would be spent locally on whatever dumb shite poor people buy. At restaurants, big rim stores, strip clubs, etc. Those merchants would spend their money and more jobs would be created to provide those goods and services.
The multiplier effect would bring the total economic activity to a net positive, as in more than $100 million right?
People would get the cash and spend it. Some of it would be spent online on out-of-state businesses but most of it would be spent locally on whatever dumb shite poor people buy. At restaurants, big rim stores, strip clubs, etc. Those merchants would spend their money and more jobs would be created to provide those goods and services.
The multiplier effect would bring the total economic activity to a net positive, as in more than $100 million right?
17
Posted on 11/16/14 at 8:07 pm to Asgard Device
More film tax credit BS.
You want to debate a hypothetical or do you actually have something to say about a real issue?
You want to debate a hypothetical or do you actually have something to say about a real issue?
Posted on 11/16/14 at 8:09 pm to Asgard Device
It depends on where the government got the money from.
Posted on 11/16/14 at 8:10 pm to member12
Film tax credits aren't a real issue?
Posted on 11/16/14 at 8:12 pm to member12
quote:
More film tax credit BS.
No. It's an attempt at a logical discussion. An exercise in thought and math, if you will.
Posted on 11/16/14 at 8:13 pm to Radiojones
quote:
It depends on where the government got the money from.
I don't necessarily disagree, but why does it depend on where the money came from? What difference does it have on economic impact?
Posted on 11/16/14 at 8:14 pm to Asgard Device
quote:
No. It's an attempt at a logical discussion. An exercise in thought and math, if you will.
It looks more like a philosophical statement.
If it were an exercise in thought and math, you'd have facts and figures to debate about something real. Where are they?
It's no different than starting a thread using the same logic demanding why we have taxes at all, and speculating the economic impact of any government spending or the economic impact of spending $1,000,000 dropping a bomb on someone.
In all likelihood I probably agree with your stance, I just don't see this as reasonable topics for discussion without a real, non hypothetical scenario.
This post was edited on 11/16/14 at 8:20 pm
Posted on 11/16/14 at 8:16 pm to Asgard Device
quote:
I don't necessarily disagree, but why does it depend on where the money came from? What difference does it have on economic impact?
Because they are probably taking it from one sector and moving it to another. Instead of building roads, bombs, schools, etc...it will go to Walmart, cheap beer producers and people who make flashy cell phone accessories.
Posted on 11/16/14 at 8:18 pm to RogerTheShrubber
quote:
Because they are probably taking it from one sector and moving it to another. Instead of building roads, bombs, schools, etc...it will go to Walmart, cheap beer producers and people who make flashy cell phone accessories.
But if the economic impact is a net positive then isn't that more for everyone? Do people who provide the goods and services bought with the money not pay income taxes? What about all the jobs that it would create?
Net positive economic impact. Isn't that the gold standard?
Posted on 11/16/14 at 8:23 pm to Asgard Device
If you're shifting from one sector of the economy, the only people who will believe it's a net positive will be those who benefit. Sure it's great to circulate money but if you're just moving it around, you aren't doing anything revolutionary.
Posted on 11/16/14 at 8:34 pm to Asgard Device
quote:Nancy Pelosi agrees.
But if the economic impact is a net positive then isn't that more for everyone? Do people who provide the goods and services bought with the money not pay income taxes? What about all the jobs that it would create? Net positive economic impact. Isn't that the gold standard?
Posted on 11/16/14 at 8:36 pm to Jbird
quote:
Nancy Pelosi agrees.
Why? Why wouldn't you agree? If the bags of cash were dropped on a company and they provided a net positive economic impact then would you still look at it the same way?
Posted on 11/16/14 at 8:36 pm to RogerTheShrubber
It is a great question to ask.
I do not expect any welfare proponents to actually comment except to say that is another thread on film credits or attack you for some reason.
I do not expect any welfare proponents to actually comment except to say that is another thread on film credits or attack you for some reason.
This post was edited on 11/16/14 at 8:38 pm
Posted on 11/16/14 at 8:38 pm to Asgard Device
If it is being taken from other citizens then it is a zero sum game.
If it is being printed from thin air then it could have a positive affect on the economy provided it does not increase inflation.
If it is being printed from thin air then it could have a positive affect on the economy provided it does not increase inflation.
Posted on 11/16/14 at 8:39 pm to Asgard Device
Where
is
the
money
coming
from?
is
the
money
coming
from?
Posted on 11/16/14 at 8:40 pm to Asgard Device
quote:
shite poor people buy. At restaurants, big rim stores, strip clubs, etc.
Posted on 11/16/14 at 8:41 pm to Radiojones
quote:
provided it does not increase inflation.
Well if is created money it will cause inflation relative to the money supply before the money was created.
Posted on 11/16/14 at 8:43 pm to Asgard Device
quote:
Let's say the state decided to drop $100 million in bags of cash on "disadvantaged" neighborhoods.
Ever see people drop $20 in ones from a balcony on Bourbon St? The murder rate would go way up. We'd need to call in the national guard to keep the peace.
Posted on 11/16/14 at 8:44 pm to RogerTheShrubber
quote:
Because they are probably taking it from one sector and moving it to another. Instead of building roads, bombs, schools, etc...it will go to Walmart, cheap beer producers and people who make flashy cell phone accessories.
All of those things are included as economic activity.
Just think there are people who say if we give $1 in tax money taken from tax payers to a business and it creates $7 in purchases of flashy cell phone accessories that we should do it.
Posted on 11/16/14 at 8:51 pm to Asgard Device
quote:This is nothing more than a version of the broken window fallacy, without the broken window.
People would get the cash and spend it. Some of it would be spent online on out-of-state businesses but most of it would be spent locally on whatever dumb shite poor people buy. At restaurants, big rim stores, strip clubs, etc. Those merchants would spend their money and more jobs would be created to provide those goods and services.
LINK
No. It won't create wealth. Otherwise we'd simply print up billions and billions of dollars and magically be the richest nation in the history of man.
Money must have some economic value behind it. Spending money on trinkets and economically unproductive consumer goods does not increase economic value. It simply consumes natural resources, and promotes waste.
Wealth doesn't stem from spending money. Wealth comes from applying money to investment.
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