What happens when people are paid more money?

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What happens when people spend more money?

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What happens when businesses make more money?

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3 simple questions, thank you.

...apparently you think the three are related ?

They feel increased self-worth.

The economy grows but savings dwindle.

Christmas bonuses for owners.

1. When people make more money, they either save it for future consumption or they spend it on goods. How they do decide is highly correlated with their income level.

2. When people spend more money, demand is created for a certain good.

3. When businesses make more money, they can do a number of things. They can invest it in the company, they can pay share holders, or they can pay their employees more. It really depends on the business.

I assume you have more questions so have at it.

one answer to all of those is, more money is taken from them.

They have more money



They have less money



They have more money

Depends on their character, and who they are.

Yes, but you didn't answer the op. You added in another factor. Congrats.

Kind of like posts #2, and #5. But you call me out :P. I must be pretty special!

You're not increasing the amount of goods or services in circulation, so nothing besides an inefficient redistribution of wealth.

Businesses cannot make more money by giving away more money.

A well-educated, populous middle-class is more productive, and their high rate of production does lead to wealth that benefits businesses, but you're wrong to insinuate that paying people more is the cause of this. A strong middle class is productive, and this creates wealth that benefits businesses. You cannot artificially create a middle class by raising the minimum wage, you need to redirect tax dollars into education and job training.