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From: scw@cepu.UUCP
Newsgroups: net.politics
Subject: RE: 'Re: YOU EARNED IT??? - (nf)'
Message-ID: <219@cepu.UUCP>
Date: Wed, 11-Apr-84 08:18:38 EST
Article-I.D.: cepu.219
Posted: Wed Apr 11 08:18:38 1984
Date-Received: Fri, 13-Apr-84 01:38:02 EST
References: <302@iuvax.UUCP>
Organization: VA Wadsworth Med. Center, LA CA
Lines: 21

<>
    >James Conley (iuvax!jec)
>   Your[...] incorrect.  By taking idle money from the wealthy (money
>   invested in some form of savings) which creates no aggregate demand and
>   giving it to people who will (because of lack of money) need to spend
>   it on goods and services, you will increase aggregate demand and the
>   money will be [...] idle money to use.

I beg you pardon? Am I reading you correctly?  Spend Capital to
increase wealth? Seems that you have forgotten the multiplier effect
(n dollars deposited in a bank produces something like 6n dollars
circulating <any one know the exact figure [it depends on the current
reserve requirements]>).  There is very little *IDLE* money (except in
hordes of cash/gold).  Investement is what provides the tools to use
and the factory to work in (they don't just spring fully formed from
the ground) so he can get a paycheck to spend.
-- 
Stephen C. Woods (VA Wadsworth Med Ctr./UCLA Dept. of Neurology)
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