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White House Floats Gun Control Proposals

382
Obdicut (Now with 2% less brain)1/07/2013 6:56:42 am PST

re: #373 Sol Berdinowitz

It’s all about “job creators”. They forget that working people also help to create jobs at local businesses and pay taxes to employ teachers, policement, firemen, etc.

But we have heard that these are not real “jobs”…

One phrase I very, very, very rarely here any ‘conservative’ economists utter is ‘the velocity of money’. It’s weird, because it’s one of the most important concepts in capitalism; in order for their to be demand, for a robust economy, money can’t get stuck. If one guy in town owns all the houses, all the grocery stores, etc, then the economy is going to stick because money will continue to accrue to him, making it both harder for anyone else to start a business from lack of capital and spending the overall expenditure in the town because he won’t buy as much stuff as ordinary people would.

This is why the increasing wealth disparity is so bad for the economy: The economy flourishes not when individuals have massive amounts of money, but when money is flowing quickly, going from one person to the next with rapidity. And we have the opposite— the velocity of money is slowing, as more and more accrues to the already-very-wealthy, who can’t spend it fast enough even if they wanted to and whose investments are only rarely into new businesses that produce jobs.