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When people spend money to somebody happens. If you spend a dollar or a million, spending money to create cash flow, cash flow creates jobs. The economy is driven by the exchange of goods and services, movement of money. Even money is a product where credit is too expensive form of higher taxes, consumer spending is limited, especially for larger purchases. An example of this current credit crisis. If the consumer choices are limited because the credit is not available for larger purchases that can have a devastating effect on all types of businesses related to those products. If the business is successful we all partake. A particular business might need, the carrier and the shipper, printing or any number of other business services. All those in favor of businesses and employees and the local economy that the business is located. An example of this is a company of 250 or 500 or the number of employees Anytown USA. When these workers go to lunch, buy gas in their car, shop in local stores close to work so it has a positive impact on the local economy. Spending money is very important that the leadership of the economy, so every news station in the country reported year-end holiday sales figures. For in six of all enterprises that produce, ship, sell, repair, cleaning, install or promote these products. If companies do not make enough profit, they spend layoffs, fewer employees and less money and in turn more jobs lost. Many different types of businesses rely on each other to survive. Suppose you have a very large company business with hundreds of other businesses such as Wal-Mart or General Motors. Now I think of the employees and all the different products and services, their money is spent. It’s only good things in the economy, however, when a large part of the cash flow stops, well, big problems can occur, such as problems with the economy now faces.
Now let’s take a look at the rich and trickle down effect on. If someone is rich or poor, or anyone from spending money to benefit someone, but let’s look at it from top to bottom. Some rich man owns a number of their own business or enterprise employs more X people. Employees pay taxes, spend money and all the necessary costs of life and someone else’s gain in revenue to make money. Also this is a rich man in his own home, two or three, and when you buy a home or a car, money exchanges hands pay more tax and earned income, and so on. What about the house and car maintenance? Painting, roofing, carpet cleaning and floor care, house keeping and car mechanic, car wash, tire. The list goes on and on, so I really do not think anyone should be upset when the rich are becoming richer, they are likely to spend more on it and a positive financial impact. All companies that help to maintain their wealth and the people that work for them to get an advantage and in turn employ people who also spend money and pay taxes. So, a rich man will automatically redistribute wealth whenever he spends the money. The creation of wealth is the reason most people work in the first place. The company does not start from scratch, began to run and the people, and if successful companies, you may find that someone got rich because of it. That the property of spending and can make a rich man decides to another company or someone to start their own business, and the cycle begins again trickle down, so thanks to a few rich people, the fact that there is still work. Any place you spend your money to someone you money and support the work and business. The economy runs well when you spend money, the more you spend, the more everyone benefits. DOES trickle down trickle down. It is an economic fact, even if the rich are becoming richer and the poor getting poorer, the money is still flowing from top to bottom. If an area of the business, the employees who spend money on food, housing, transportation, entertainment and many other things. So think about the benefits of big business, higher income in many other small businesses in the vicinity. Many businesses do business with each other, and this will improve the economic situation for everyone, so go spend some money.
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Source by Dana Golden