3 ms·
"I am having somewhat of a hard time figuring out how this "stimulus plan" helps the economy, as it appears it's intended. If a startup is able to reach profit
by micks56 18y ago
"I am having somewhat of a hard time figuring out how this "stimulus plan" helps the economy, as it appears it's intended.
If a startup is able to reach profitability within three months, this startup surely wouldn't need Mark Cuban's money to move forward and create jobs at some point in the future."
Not everyone has a bankroll sitting in a savings account ready to start a business. Mark's idea solves that.
And even if a person does have that bankroll, he may not want to invest it in the new business. Recessions don't end overnight because people hoard instead of spend money. The worse things get, the more people want to save for the long term, which prolongs the recession. Mark's idea solves that case, too.
Mark will fund promising ideas which need the cash now and can put it to good use. The cash he gives will be mostly gone by 90 days. That cash is a direct injection into the local and national economy.
So what gets accomplished is:
1. a possible wealth generating/job creating business is started
2. spending occurs when the natural inclination is to save
Both will have stimulative effects on the economy.