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1. william5331 at 03:44 AM on 18 November, 2018

   Tax and Divident (offset payments) can be a great stimulus in a low income economy.  Money is put in the hands of the poorest who immediately spend it just to survive.  At every transaction a portion flows to the government who, ideally, spend it on good works, putting the money back into the economy.  Money supply is far less important than velocity (the rate that money circulates) and this increase in velocity lifts a country out of its poverty.  Money is simply a mechanism to get people working and the amount of work done depends to a large extent on the speed of circulation of money.

   A man comes into a hotel bar.  He says to the propriator I would like a room.  Here is $100 to show my good faith.  Could your porter show me your rooms before I decide to stay here.  The propriator calls the porter and away they go.  The hotel propriator immediately sends the $100 to the butcher to pay off part of his outstanding bill.  The Butcher uses the $100 to pay off part of his outstanding rent.  The owner of the butchers store goes to the lady of the night who uses one of the rooms of the hotel to contuct business.  She pays of part of her bill at the hotel.  The man comes down and says he has decided not to stay and takes his $100 back.

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