Simple Economics: by David L Horton
When the middle class and lower wage earners are doing good and have some real spending* power, then the economy does well, the businesses and wealthy benefit and all is good.
If businesses and the wealthy get greedy and want a bigger piece of the pie and they find ways to get some of the pie from the middle class and lower wage earners, then the economy will suffer and do worse. Eventually, this will also cause the businesses and wealthy to suffer as well.
*Real spending power- earned money they have available to spend and not borrowed money at high interest rates.
The wealthy with more money does not create more jobs.
Demand for goods and services is what creates more jobs.
The middle class and lower wage earners having more real spending power, is what creates the demand for goods and services.
---------------------
In 2009 alone, 49 companies earned combined profits of $78.6 billion, yet paid no taxes - and collected tax rebates totaling $10.8 billion.
CBS News (11-3-11)
American Millionaires: 1,400 paid no U. S. income tax in 2009. (The Huffington Post)
----------------------
