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6/24/07 - EP20 - Circle of Money
 Is money like energy... Neither created nor destroyed? The following flowchart goes along with my discussion on the circle of money.

    1. CONSUMERS SPEND OVER 100% OF THE MONEY THEY HAVE BY GIVING IT TO BUSINESSES    
       
    2. BUSINESSES RECEIVE 100% OF THEIR INCOME FROM CONSUMERS    
         
BUSINESSES PAY ABOUT 20% OF THEIR INCOME IN TAXES TO THE GOVERNMENT       BUSINESSES PAY ABOUT 30% OF GROSS INCOME IN SALARIES TO EMPLOYEES WHO ARE CONSUMERS
       
        CONSUMERS PAY ABOUT 25% OF THEIR TOTAL INCOME IN TAXES TO THE GOVERNMENT
       
    THE GOVERNMENT REDISTRIBUTES MORE THAN 100% OF THE MONEY IT RECEIVES TO PUBLIC WORKS, BUSINESSES, AND PURCHASE OF ASSETS    
         
PUBLIC WORKS SUCH AS SCHOOLS PAY ABOUT 40% OF THE MONEY THEY RECEIVE TO EMPLOYEES WHO ARE CONSUMERS BACK TO CONSUMERS 1.   GOVERNMENT PURCHASES ASSETS FOR ALL OF IT'S PUBLIC WORKS SUCH AS SCHOOL, MILITARY, POLICE, AND WELFARE… MANY ARE UNSED AND MISUSED.    GOVERNMENT SUBCONTRACTS TO SOME BUSINESSES THAT RETURNS THE CYCLE BACK TO NUMBER 2.
       
    DEAD MONEY THAT GETS STUCK INSIDE THE GOVERNMENT MACHINE.     
 

 

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