Comment Re:Three possibilities (Score 1) 267
Good Grief. OK so for the record I do have a degree in Economics.
You pay someone $10. They deposit that money in a bank. The bank loans the $10 to someone else. Your $10 is now $20. The person who takes out the loan pays someone for equipment they want. That person puts the money in their money market savings account. The bank invests that money in Apple stock. And so it goes. How fast this happens is called the velocity of money.
The government spends more than they earn, prints money. That's another lesson, called stupid shit politicians do.
You pay someone $10. They deposit that money in a bank. The bank loans the $10 to someone else. Your $10 is now $20. The person who takes out the loan pays someone for equipment they want. That person puts the money in their money market savings account. The bank invests that money in Apple stock. And so it goes. How fast this happens is called the velocity of money.
The government spends more than they earn, prints money. That's another lesson, called stupid shit politicians do.