and it produces more than the owner”
I believe the Keynesian talking point on this is the “multiplier effect”. That term was bandied about ad nauseum during the stimulus era. The idea being, if you give a buck to Joe, then he spends it at the local shop, the shopkeeper in turn spends it elsewhere, and so on blah blah blah. Then they produced a “study” that said that the “multiplier effect” created something like $1.20 in value for every $1.00 put into the system.
So there you have it.
Next on my list of “things to do” is alchemy. And other forms of magic.
Oh, oh, can you spend straw into gold???
The idea being, if you give a buck to Joe, then he spends it at the local shop, the shopkeeper in turn spends it elsewhere, and so on blah blah blah. Then they produced a “study” that said that the “multiplier effect” created something like $1.20 in value for every $1.00 put into the system.That would be great if there was no sales tax, income tax, payroll tax, self-employment tax etc. sucked out of each shop owner's dollar before s/he can spend it.
Ultimately the government gets it all. Spending your money is the fastest way for the government to get your money...all tax plans work that way by design.