The problem with the economy is in fact that it's capitalist. The rich make money, and the richer you are the more money you make. You have more money to put into the economy, and since you make money by spending money smartly, you get money back
The problem then lies, when rich people dont spend money
They rake in millions of dollers of day, because they want to pass the savings on they dont spend alot of money to do it. Theres the problem. You can almost see the paradox, making more money by spending less money than you make, but you cant make money without spending money
If a rich person pays his employees, say, 10 bucks an our, and makes a thousand per hour, with 100 employees woking at a time, he wont make money. This rich person needs to either spend less, or make more. To make more, he could pay his employees less, say 8 bucks, so he could make 200 bucks per hour more, which is nice.
But if he made 200 bucks per hour profit, and the other made 8, well they would be spending their 8/h on stuff, thus paying other people to make into their 200/h range, giving the rich more money, but they cant spend money, they have to save for the future, but they cant, cause they have to eat.
Now, this rich guy is making 200/h, in theory, he could live off this forever, paying odd lumps of sum to fix machinery, otherwise, he doesnt have to spend any more money to live. If he makes 2400 dollers in a working day, then ok, he has enough to live, as thats 6 figures per callender year, 400k. Thats like a really shitty hockey player in the NHL
But like I said, he could be a millionare in a few years if he really wanted to.
Now, ignoring the math now that he has millions of dollers, you dont need math when youre rich. Now that he has millions of millions just sitting there, there's no one to spend it. Theres no one making money now. Theres a gagillion dollars just sitting away in rich peoples bank accounts, and since they just keep making money because of the aformentioned, you need money to make money, thing..., they are making money, thus making more money, thus getting richer and richer.
This is a problem. While the country has a billion gagillion dollars to spend, a gagillion of that is just sitting there. Thats a gagillion the country will never see again, and that just keeps going up
Use that money, to make money. Say you're Ovenchicken, you make 10 million dollars a year to play for the Capitals. Now, that might seem like a lot of money for a little pay off, its really not.
When you think of a star, you think of how he helps your team win. Winning teams make more money unless you're canadian, in which you're ok if you wear blue. Otherwise, winning teams are fun to watch, so people go see them. When people go see the team, the fans pay for tickets, which pay the people in the arena's salaries. Now, businesses around hockey arena's and other high traffic areas make more money because of the high traffic. So because people in Washinton want to see ovi play, they buy things, food, jerseys, parking tickets.
When you buy that food, you are paying the salary of the dude giving you the food. This is the dude that needs to make money. If he's smart, he can use his money to buy an education. Now because people spending this money bought him an education, he can now run a business, and thus create more jobs
But ovie is still rich as fuck
So it doesnt really fix anything. But yes it does. Ovie brings in money, which made jobs, so it made jobs. It's not a complete 10 million dollar loss
But back to him spending money. If Ovie wants to buy a house, he spends money on that house. The person who used to own that house now has a lot of money. Now THAT guy can go buy food and pay salaries and create jobs.
See, Ovie just moved ALOT of money even though he MAKES alot of money
Sports players arnt over payed, alot of them just make too much money for their skill level in their sport. Paying Scott Gomez 10 million dollars will not bring in money.
In the same way, corporations that really dont do anything, dont spend money, and dont bring in money like Ovie would. Companies consistently make money, more than enough to support themselves
If they are making more money than they know what to do with, spread the wealth. They are making money, but not brining it in, not stimulating the economy. Opening up a new branch of 150 people, THAT stimulates the economy, paying employees, building houses, making people spend money.
This is why capitalism sucks. The rich get richer. Tax the rich. Or at least tax static money over a certain point. Taxing static money will mean that people that dont spend money, will lose it, too allow growth in other area's. Taxing money above a certain point allows for people to save money, allowing them to pay that big ol overhead when it comes to creating a big income, while still stopping them from just hording it.
Thats the only way the economy will improve. No economy improved by people sitting on money. Last I checked, that's what caused the great depression...literally
