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From: tac@teldata.UUCP (Tom Condon)
Newsgroups: net.politics
Subject: Re: YOU EARNED IT??? - (nf)
Message-ID: <302@teldata.UUCP>
Date: Thu, 12-Apr-84 11:37:59 EST
Article-I.D.: teldata.302
Posted: Thu Apr 12 11:37:59 1984
Date-Received: Fri, 13-Apr-84 20:59:02 EST
References: <302@iuvax.UUCP>
Organization: Teltone Corp., Kirkland, WA
Lines: 52

, (sop to the blank line eaters--consider it a religious sacrifice)


>>  Subject: Re: YOU EARNED IT??? - (nf)
>>  Message-ID: <302@iuvax.UUCP>
>>  Date: Mon, 9-Apr-84 22:06:04 PST
>>  Sender: notes@iuvax.UUCP
>>  Organization: Indiana University
>>
>>  []
>>  	Your argument that government does not stimulate the economy
>>  by giving money to people (Financial Aid, Unemployment Insurance, etc.)
>>  is 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 cycled back to the public in the form of goods payed for.  This line
>>  of reasoning is another virtue of taxing the wealthy more heavily: to
>>  put idle money to use.
>>
>>  					James Conley
>>  					Indiana University at Bloomington
>>  					...iuvax!jec

  Now admittedly I am not one of the wealthy (financialy), but I feel that
you do not get to be rich by having idle money.  That "idle" money is working
every second of the time.  Sometimes it is doing two or three things as once.
The "wealthy" *INVEST* that money; either in banks--which then have money
to lend--or in corporations (either through purchase or stocks and bonds)--
which then have growth capital (creating new job positions).  They *VERY
SELDOM* leave their money just lying around.  
  Before you fly off of the handle let me say that I feel the wealthy do 
not pay their share of the taxes, but the main reason is that they have
invested it in the tax shelter loopholes so wisely left in by the congress
for just that purpose.  Now if they (congress) are going to leave those
loopholes in (and is there any doubt about that?) then any taxation increase
to "stimulate the economy" is going to bear directly on the middle and
upper-middle classes.  
  I would like to see your definition of "aggregate demand".  The demand 
for the goods was always there (the people have to eat, whether they have
money or not), the only difference is the VALUE of the demand--the previous
demand was for the product at a lower price.  Under true free enterprise
the supply and demand would adjust the price down to the available purchase
price.  This system has been modified by artificial shortages (pay a farmer
not to plant) and artificial limits (price limits both top and bottom, and
wage limits) as well as a plethora of other "regulated" values which serve
to screw up the economy.

	    Standing on my Soapbox and waiting to hear from you,
	    Tom Condon     {...!uw-beaver!teltone!teldata!tac}

	    A Radical A Day Keeps The Government At Bay.