Ever wonder about the trips of a dollar? This, though simplistic, is a bit of reflection of that trip. I think of it because of the hard times the dollar has fallen.
Someone gives you a dollar. You go buy something that you need from a store with it. The store has lots of people who also bring a dollar and buy stuff. With the dollars the store gets from selling things, it pays rent, utilities, resupply costs, and for employees, with some left over for the store owner buys something that he needs at other stores. This illustrates the multiplication effect of the dollar, and on it goes.
Someone gives you a dollar. You go buy something that you need from a store with it. The store has lots of people who also bring a dollar and buy stuff. With the dollars the store gets from selling things, it pays rent, utilities, resupply costs, and for employees, with some left over for the store owner buys something that he needs at other stores. This illustrates the multiplication effect of the dollar, and on it goes.
The landlord takes the rent money and buys things, and builds a new rent property to rent to more stores, who will buy and sell more goods, and employ more people, and buy what they need. The builder of the rent property does the same. They all spend their money on needs. The utility company and the suppliers who furnish the store owner his needs do the same. The utility company pays the people who produce energy and for the transmission of it. The people who produce energy and transmit it plough back their dollars into another cycle, much the same as it was with the original dollar. Employees all take their salaries and go back to the stores to buy things. Most of the people, the workers, the landlords, and all, also bank their money and put some of it in savings. The bank uses the money deposited by lots of people to invest and make more money so it can pay all its overhead and a give some to stockholders and also loan money to people for a fee to go do what they don’t have the immediate money to do. All of it works fine for everybody as long as there is enough coming in to cover expenses obligated.
Sometimes, someone comes up against hard times. When that happens the people who make dollars also give some of it the help those in need, but for this to work, the needy have to be a small segment of the whole. Everybody can’t be on the take else no one will be making dollars.
Oh, where does the dollar come from? The government makes it, but in doing so it guarantees that it will always be worth a dollar, but that, in part, is based on the citizens sending in tax money to the government, which we did not mention. In addition to making the dollar bill, the government also sometimes helps people who cannot help themselves. But it has more responsibility than helping the needy. Those tax dollars also provide for infrastructure and other needs, including security for the people who earn dollars and pay taxes. It is also used to pay the people who determine what the dollar will do.
Amazing what a dollar bill can do provided it is properly budgeted.
Sometimes, someone comes up against hard times. When that happens the people who make dollars also give some of it the help those in need, but for this to work, the needy have to be a small segment of the whole. Everybody can’t be on the take else no one will be making dollars.
Oh, where does the dollar come from? The government makes it, but in doing so it guarantees that it will always be worth a dollar, but that, in part, is based on the citizens sending in tax money to the government, which we did not mention. In addition to making the dollar bill, the government also sometimes helps people who cannot help themselves. But it has more responsibility than helping the needy. Those tax dollars also provide for infrastructure and other needs, including security for the people who earn dollars and pay taxes. It is also used to pay the people who determine what the dollar will do.
Amazing what a dollar bill can do provided it is properly budgeted.
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