scw@cepu.UUCP (04/11/84)
<> >James Conley (iuvax!jec) > Your[...] incorrect. By taking idle money from the wealthy (money > invested in some form of savings) which creates no aggregate demand and > giving it to people who will (because of lack of money) need to spend > it on goods and services, you will increase aggregate demand and the > money will be [...] idle money to use. I beg you pardon? Am I reading you correctly? Spend Capital to increase wealth? Seems that you have forgotten the multiplier effect (n dollars deposited in a bank produces something like 6n dollars circulating <any one know the exact figure [it depends on the current reserve requirements]>). There is very little *IDLE* money (except in hordes of cash/gold). Investement is what provides the tools to use and the factory to work in (they don't just spring fully formed from the ground) so he can get a paycheck to spend. -- Stephen C. Woods (VA Wadsworth Med Ctr./UCLA Dept. of Neurology) uucp: { {ihnp4, uiucdcs}!bradley, hao, trwrb, sdcsvax!bmcg}!cepu!scw ARPA: cepu!scw@ucla-locus location: N 34 06'37" W 118 25'43"