Forum Post: Economics 101
Posted 12 years ago on Nov. 19, 2011, 9:34 a.m. EST by littleguy
(44)
This content is user submitted and not an official statement
For those who think that giving tax breaks to rich corporations creates jobs Not true. Putting it simply. You think that if the owner of a company, that builds washing machines, is given $1,000,000 he is going to build more washing machines when he already has a 1000 washing machines in inventory. He is not going to hire anyone to build more washing machines until his inventory is sold down. This can not happen because the people who need washing machines have lost their jobs and have no money. Now take that same $1,000,000 and give it to 2000 people ( $500 each ) who need a washing machine. The washing machine maker will be hiring people tomorrow because his inventory is gone and there are still 1000 people who need a washing machine from him. Economics 101 DEMAND CREATES SUPPLY , supply does not create demand. The really cool thing is that the people he hired to build 2000 more washing machines, all get a paycheck. They all need a new microwave, so they go buy one. Now the microwave builder needs more microwaves. He hires people to build them and they get a paycheck. They all need shoes for their families. Now the shoemaker has to make more shoes .......
Post this "economics 101" to your political representatives, local,state and federal. If they see it often enough they might get it, and awaken to why we voted for them.
I tried when the politicians gave away 700 + billion dollars to a bunch of rich thieves a couple years ago. I pointed out then that, with that money, they could give the entire working population of America ,it was something like, $6700 each. So if husband and wife worked they would get $13,400.I just googled total working population of America and divided that into $700 billion.To be fair the people who had lost jobs because of the economic collapse should be included and maybe salaries over $500,000 could be excluded.The point is : Injecting money into the economy that way would have created tremendous product demand (creating the need for more products (JOBS)) and shut down housing foreclosures which would have saved the lending institutions. But the politicians knew then they were driving the population into the into economic peril with that "Bail Out Plan". It was just another ploy to make the rich richer. What we, as the population of the United States, need to understand is that we are the economy of this country. We buy the products, we use the products, we build the products, we are even the ones that mine or grow the raw materials that we use to build the things we need and want.Those ridiculously filthy rich CEOs are just parasites on our backs. Does anybody really think that if we kicked all their butts to the curb that even one of those corporations would actually collapse? There are many CEOS that are receiving $10,000,000 + salaries ( notice I said receiving not earning ). Ever stop and think for a minute that $10,000,000 is 333 $30,000 + per year JOBS. People, this is our country, we have become complacent thinking we can trust others to be in charge and do the right thing. If the appointed leaders ( corporate and government ) understand that we as the population will unify as one force against misconduct and that they will be held accountable for their actions things will change rather quickly.These leaders just need to be reigned in by a unified population so they remember who they really work for.
Thank you littleguy. I have tried literally hundreds of times to make people understand this simple truth. But trying to make a die-hard conservative understand this is like trying to make a spoiled rotten 4 year old understand why they can't have candy for breakfast.
Virtually impossible.
http://www.youtube.com/watch?v=4Z9WVZddH9w
Flawed theory my dear sir
George Bush gave everyone $500. What happened to that $150 billion ?