The dollar is taken from my paycheck.
So far, so good.
An IRS employee is paid from that dollar.
Let's say he gets ten cents. He spends that ten cents, together with nine other people's ten cents, on a candy bar, putting part of it back into the economy.
Part of that dollar ends up in Social Security
Where, eventually, ten cents will come back to you, so that you can spend it on candy bars after you have stopped working -- and paying taxes.
Part of it ends up in medicare
Where ten cents will be paid to the doctor who gives you medical treatment when you are seventy-five, which he will then spend to purchase his own candy bars. Another ten cents will go to buy parts to make a pacemaker or medical device to keep you alive another fifteen years.
Of those parts, parts of those end up in the hands of administrators and bureaucrats.
I happen to be a government employee. If you prick us, do we not bleed? We've got our own candy bars to buy. Ten cents for me.
Of the remainder, let's put it into the welfare program, and pay it out, where it will also go to
more and more layers of paper shufflers.
Ten cents to the welfare agent, ten cents for office supplies, ten cents to the social worker, ten cents to the office secretary.
By the time it gets into a welfare check, that dollar of mine is now narrowed down to probably
a tenth of the value to the local economy.
Ten cents to the welfare queen.
On your dollar, you've now supported yourself twice, a doctor, five government employees, and a poor person. Let's look again at what happens if you spend that dollar on a candy bar.
Let's say, of that dollar, 60 cents is what the store paid for that candy bar. That leaves 40 cents,
which goes back out in the form of wages to employees, and profits in the owners pocket.
Some of the wages that the employee earns is going to go back to the store, because she has to
She is also going to go down to the hardware store, and buy some potting soil for her plants.
So, sixty cents goes to the candy bar manufacturer, and, at best, thirty cents goes to the store owner and ten cents goes to the employee.
And this is just the first level of transfer. The distribution of wealth becomes far clearer if we continue to extrapolate -- more and more people are reached with the same money.
Just because the money doesn't all go to the same place doesn't mean it's not going back into the economy. Government spending of *any* kind will find its way back into the economy -- just like corporate spending. It's just a different kind of corporation -- one that doesn't keep its profits.
"If you stay, Infinite might try to kill you. If you leave, the FBI definitely will. And if you keep yelling, I might do it myself."
[ Parent ]