Friday, October 14, 2011

Spending is income

For every dollar spent in the economy it is income on the other side. If you spend money at Walmart it is income to Walmart. If government spends money for teachers and police this is income to the teacher and police. When a teacher gets income the teacher then spends money at stores and then more people spend money. If government spends $1 the multiplier is 4 depending on peoples propensity to consume. A multiplier of 4 is conservative and there is no crowding effect. Spending creates jobs and can increase income..this is basic economics..many Republicans need to know..

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