Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[McTraveller]

Are there any studies involving when giving someone $1 results in new production of goods or services, compared to just being involved in a trade?

For example, paying someone to build a house clearly results in creation of a new house.  But if you pay someone $1 for a book at a yard sale, or even buying $1 for something at retail, that is just trading existing goods.

So basically maybe, how many transactions does the average unit of money take before going to someone "making" something? So me buying retail is one transaction, then the retailer paying a distributor is a second, then the distributor paying the manufacturer, would be 3 transactions.

[hector13]

Does providing services count?

[McTraveller]

Hrm. I think services are a different but similar metric; I wouldn't lump them in with goods.

[dragdeler]

Interesting.

I heard that if you burn something, the carbon floating in the air will on average create 20 times more warmth by reflecting infrared until the carbon reabsorbed, than the actual fire did.

Still a little dubious how one could even go about knowing such a thing.


In my mind it's: every dollar created served to invoke a building or at least a car (yuck) and from there on out it's basically an entropic shitcycle except there's interest, so somehow there is less chairs as the game of musical chairs keeps getting bigger and bigger?! Not a satisfactory answer probably.

[McTraveller]

So the background I was thinking - say you want to fund some endeavor.  So you say take $1B that is just sitting around and hire people.  Those people go buy food, houses, etc. in general that already exists.

How many transactions are required for actual supply to increase?  That is - what's the lag between injecting funds into the economy and having an increase in supply (if any)?

In thinking about it, I think maybe you could look at services the same way, but services have an interesting behavior, in that a fixed labor supply has a wide range of demand it can serve with "instant" reaction time; consider a barber that can perform up to 5 haircuts per hour, and can stay in business so long as they perform 10 haircuts per day.  That means the "supply" of haircuts is instantaneously adjustable between 10 and 40 haircuts per day (for an 8 hour day). Once demand gets too high, the barber can probably raise prices, until a competing barber comes into town.  So I may argue that what you want to look at for services is the change in service providers, or change in service capacity, rather than just the change in number of haircuts or whatever, to measure the impact of "new funds on services."

[Frumple]

I don't even remotely remember the term for it, but what you're talking about is something studied in regards to stuff like welfare -- SNAP, that kind of thing. There's some kind of term of art for the delay between economic stimulus and second order effects like you seem to be talking about, though.

[EuchreJack]

It's even more interesting when you ask "Who benefits from the economic stimulus of government assistance?"
Or "Where does the money get spent?"

It's a bit of a misnomer to think of government assistance as taking from the rich and giving to the poor.  One perpetrated by mass media owned by the rich.
Instead, the middle class pay the bulk of the taxes, those tax dollars fund the economic stimulus of the poor, and the poor spend their money on goods/services provided by companies owned by the rich.

You don't honestly believe the Rich would EVER allow themselves to Lose Money? HA.

[Scoops Novel]

What kind of stories an odd themed story?

[King Zultan]

What kind of stories an odd themed story?

I have no idea what you're wanting.

[Scoops Novel]

Odd themed, themes.

[Eric Blank]

But what is an odd themed theme

[Frumple]

G-rated donger themed houseparty would be pretty odd.

[scriver]

There's no numbers in that theme

[WealthyRadish]

But what is an odd themed theme

Odd themed, themes.

[Il Palazzo]

But what is an odd themed theme