3 ms·
> ie enabling petty spending greases the wheels of the economy and lifts people out of poverty. The lack of "petty spending" is not the reason India has a pove
by DaiPlusPlus 3y ago
> ie enabling petty spending greases the wheels of the economy and lifts people out of poverty.
The lack of "petty spending" is not the reason India has a poverty problem.
- Sai_ 3y agoPeople unwilling or unable to spend cash leads to fewer businesses being formed. This should be obvious. Therefore, anything which loosens the purse strings should lead to more business activity. More business activity will lead to better resource allocation and hiring, more auxiliary services cropping up to support novel needs. All this will lead to fewer poor people. Now, reverse the arrow. If it were to become harder and harder to spend money, more and more people would fall into poverty.