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To: ksen
You’ve never heard of the velocity of money?

LOL!
I know the government takes it from my pay at the speed of light.

27 posted on 11/27/2012 12:07:01 PM PST by Lancey Howard
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To: Lancey Howard

Hahaha, that’s funny ;)

But velocity of money is a real thing:

http://en.wikipedia.org/wiki/Velocity_of_money

It just means how many times a given unit of money will be used over a certain period of time. So when Nancy Pelosi says that $1 of food stamp money creates $1.79 in economic activity she means Food Stamp Recipient A spends $1 for food at Store B who then takes that dollar and spends $0.50 from Supplier C who spends $0.25 on whatever else. The numbers are made up just to illustrate the point that the comment Pelosi made wasn’t really that dumb.


28 posted on 11/27/2012 12:32:02 PM PST by ksen
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