rednicky
Posts: 313
Joined: 1/14/2009 Status: offline
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quote:
ORIGINAL: masterdave48161 How is it that paying more taxes helps to right the economy? Well masterdave, it all started with the rise in the cost of gas. It got to the point where people stopped spending money on things because they had to pay for gas. As a result, businesses started to suffer so they had to make cut backs. What's the most expensive thing that a business must pay for? People. Workers. Each individual can be paid as much as 50,000 a year. Cut 200 people and a business saves 100,000,000 dollars. So they had to lay off many people, hence the job loss. But that still wasn't enough, because big businesses were (are) still going bankrupt. So the government had to give them money. A lot of people have a problem with this. but, had those businesses gone under, even more jobs would be lost and even more people would be out of work. I believe the current rate of unemployment is 7% (I may be wrong). The great depression was 20. 7 percent is terrible and it would have been worse. This is also why other companies are buying smaller companies and taking up their debts. what would happen if the bank you used went out of business? Well, if you didn't have insurance, you'd lose all of your money. A lot of people would. So now, there are a whole bunch of people out there without money as well. Back to the job loss. Sure, there are jobs out there in highly demanded fields but these unemployed people are not trained for them. You can't be an engineer if you're an actor (or whatever). So these people must be retrained for jobs that 'are' in demand. medicine, mental health, engineering, construction. There are a lot of roads in America that need rebuilding. but these unemployed people can't afford school. Hell, they can barely afford to keep their houses. This is where the government comes in. Government funding allows people to go to school for a reduced cost (or even free). But the government gets their money from the people. Therefore higher taxes. But these taxes should be used to retrain people who are out of work. The more people there are that work, the more they spend money. The more they spend money, the better businesses do. The better businesses do, the more people they can hire to work for them. The more people are working, the more they will spend. Thus the circle persists as it should. I don't think I'm missing anything.
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Well if you would just stay away from my bridge...
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