Prices ain’t gonna fall, and not everyone can make more money.\, which means spending has to fall.
“Prices ain’t gonna fall, and not everyone can make more money.”
Are you sure about that ? As demand falls, you think producers are going to just sit back and sell nothing rather than lower prices ? Economics doesn’t work that way. When the government subsidizes something, it is giving buyers more money to buy something, which causes demand to increase, which causes the price to increase. People should not be confused that the “war on poverty” has been a failure, and resulted in a wider income gap. It is perfectly logical — the “wealthy” producers see the higher demand of the subsidized “poor” and raise prices accordingly. The have higher profits, which are then taken back by the government to redistribute to the “poor”. The “poor” are not really better off, and in fact they look even worse off than before in any income comparison to the “wealthy” producers.