3 ms·
You provided a poor example. Less money in circulation = less spending. If we disregard that alcoholism is a sickness and will trump all other spending and ma
by avgDev 4y ago
You provided a poor example.
Less money in circulation = less spending.
If we disregard that alcoholism is a sickness and will trump all other spending and make you lose every penny, then increasing taxation and removing money from people by raising rates would prevent the alcoholic from buying more booze.
However, the example is silly the macro economics are much more complex with individuals and businesses spanning across many different sectors.