Friday, 28 October 2016

The economic, credit and Trickle-Down Economics (The Ripple Effect)

The economic, credit and Trickle-Down Economics (The Ripple Effect)

When people spend money, someone is effected. If you spend a dollar or a million, the expenditure of money creates cash flow, cash flow creates jobs. The economy is driven by the exchange of goods and services and the movement of money. Money is also a product if the loan too costly in terms of higher rates and fees on private consumption is limited, especially for larger purchases. The current credit crisis is an example. When consumer choices are limited, as credit for major purchases is not available, it can have devastating effects on all kinds of companies have linked to these products. If the business successfully, we all benefit. A particular company may require a supplier or shipper, printing or any number of other business services. All these companies will benefit, as well as their employees and the local economy, where the company is located. An example of this is a company with 250 or 500 or any number of employees in Anytown USA. If the employees go to lunch, buy gas for their car, shop in local shops in the vicinity of the work there and so a positive impact on the local economy. to spend money is extremely important to drive the economy, that's why numbers every news channel in the country reported year-end holiday shopping season. Because it causes any company that ships manufactures, sells, repairs, cleans, installed or advertises these products. If companies are not enough to make a profit, they fire workers, fewer workers means less money is spent, and again lost more jobs. Many different types of businesses rely on each other to survive. Let's say, a very large company operates, with several hundred other companies, such as Wal-Mart or General Motors. Now, think of all those people and all the different products and services that they spend their money. It can only good things to do business, but if a large part of the money flow stops, well, there can be wide problems, as well as the problems that our economy is now faced.

Now let down take a look at the rich and their impact on conservation. If a person, rich or poor, or anyone in between spending money, someone profits, but let's look from top to bottom on it. Some wealthy person has their own business or more transactions and employs X number of people. Those employees pay taxes and money for all the necessary costs of living and someone else earns their income from the money. In this rich guy can own a home or two or three, and when buying a house or a car, purses hands paid more tax and earned income and so on. What is the maintenance on his home and cars? keep painting, roof, carpet cleaning, floor care, house and a car car mechanic, car wash, tires. The list goes on and on, so I really do not think that someone should be disturbed when the rich get richer because they are most likely to spend more of it and have a positive financial impact. All companies that help maintain their property and the people who work for them to get an advantage, and still others deal that also spend money and pay taxes. So a wealthy person automatically redistributes wealth every time he spends money. Wealth creation is the reason why most people have a job in the first place. Companies do not start from the air, they are started and run by people and if they are successful companies, anyone could, because it has become rich. The asset is issued and maybe rich man decides to start another business or to allow someone else their own business and the cycle of trickle start down starts again from the beginning, so thank some rich man for the fact that you have a job , All the places you spend your money, money makes someone and will assist a job and companies. The economy is going well, when we spend money, the more we will spend all benefit more. Trickle DOES trickle. It is an economic fact, even if the rich get richer and the poor poorer, money still flows from top to bottom. When an area companies, it has employees who spend money for food, shelter, transportation, entertainment and so many other things. So think about the benefits of large enterprises improving incomes for many other smaller businesses nearby. Many companies do business with each other and this improves the economic situation for everyone, so go spend some money.

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