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Economics is one of those subjects where simple questions have complicated answers. At a basic level, we have more than ample resources to give everyone ample
by gizmo686 13y ago
Economics is one of those subjects where simple questions have complicated answers.
At a basic level, we have more than ample resources to give everyone ample food, shelter, etc. However, because of the way money is distributed, it is more profitable for producers to create less nessasary items for those with a lot of money. With a Basic Income, producers would have a reason to create more of the basic goods now that more people have money to give for it.
Of course, the fact that these people are now spending more money does have a significant positive effect on the economy, as it is essential the definition of not a depression.
- sliverstorm 13y agothe fact that these people are now spending more money does have a significant positive effect on the economy This sounds like a house of cards. Does Zimbabwe have a significantly positive economy because of just how many Zimbabwean dollars are being spent?
- gizmo686 13y agoZimbabwe had hyperinflation resulting from printing money. The classical cause of depressions is that once people are unemployed, they no longer spend money so other people can no longer make money from them. The logic behind stimulus programs is to get people spending again to bootstrap the economy.
- taejo 13y agoJust FYI, no Zimbabwean dollars are being spent: the only trade involving Zim dollars these days is selling notes to tourists as souvenirs -- for US dollars (in which the government has denominated its accounts since 2009), South African rand, Botswana pula, etc.