I have not been trained in economics(or spelling for that matter) but I did stay in a holiday inn express one night.
I was thinking about the life of a $. It is given birth by the US Government and then paid out to people/ companies providing something for the goevernment.
Once paid, it is TAXED say 20%. So that $1 is now $.80. If it was paid to a company that company will probably to pay it to an employee and share holders. Either way that $.80 is now taxed again as income for that person, say another 25% so now it is $.60.
Well John Q's now $.60 is going to be spent on something, say a pack of thumb tacks at Walmart. He has to pay State tax(most states) on his purchase.
So now Walmart has $.57 left after a 5% state sales tax. They have to pay for the product say 25%. Leaves them with about $.42 left.
Now Walmart has to pay their employees' wages and insurance(10%). So buy the time Jane Q. gets paid it is only $.38.
Guess what Jane Q. is taxed at a lower rate of say, only 15% for her income bracket. So her actual after tax is $.32.
What will she do with her money? She will buy something with it. and again taxed. Eventually, that $1 is taxed out of existence.
My point is while it seems that money keeps going around and around it always ends up back in Washington or a state capital in the form of taxes.
If you spend your dollar will die a slow death of taxation.
I know I am missing some major stuff like when taxes are collected they are respent back into the economy. But I think it stinks that it always will end up in Washinton or Bejing.
Yeah - that idea I mentioned was embraced by several crazies in the nation's past... men like Jefferson, Madison, Washington, Adams, Hancock, Franklin... crazy guys like that. Radicals, ya know. Our current crop of free-spending congresscritters know better, of course.