How to dig out of Economic Crisis 101

How to dig out of the economic crisis 101:

How to dig out of the economic crisis 101 Royalty Free Music is “Radio Martini” by http://incompetech.com/

Basic Economics:

Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left = PROFIT Basic Economics What creates more jobs in this formula? Budget keeps cycle going with more product bought etc

Job Creation:

Job Creation Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out PROFIT In owner’s pocket More money coming in from customers creates more demand = More demand fuels more jobs to meet the demand! More employees, more product ordered etc. Budget keeps cycle going with more product bought etc

Where do tax breaks come in?:

Where do tax breaks come in? Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left = PROFIT PROFIT is what is taxed. After employees have been paid, cost of the product is deducted and operating costs are deducted. What is left after taxes pays owners, stockholders and bonuses etc. Budget keeps cycle going with more product bought etc Tax Here

What if there were no customers?:

What if there were no customers? Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left = PROFIT People are unemployed so they have no money to buy much of anything. No money is circulating in the communities. Businesses close when people don’t spend money! Going Out of Business More people downstream lose jobs creating a vicious downward cycle

What happens when taxes cut?:

What happens when taxes cut? Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left after Taxes = PROFIT Tax cuts equate to more PROFIT. More PROFIT = more money in the owner’s pocket Or maybe in the hands of Wallstreet investors, or to executive bonuses. BUT MORE PROFIT DOESN’T MEAN MORE JOBS Budget keeps cycle going with more product bought etc Tax Here

Tax cuts versus no customers:

Tax cuts versus no customers Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left = PROFIT Going Out of Business This company has gone from 5000 customers a month down to 50. Unemployment is too high and people can’t afford more than maybe food. Hey BUT GOOD NEWS – THEY GET TAX CUTS! What a shame they are going out of business due to no customers. How did those VITAL, crucial tax cuts help the business create more jobs? IT DIDN’T, IT RARELY DOES. A vibrant middle class - employed people with money to spend - creates jobs! More people downstream lose jobs creating a vicious downward cycle Tax Here

Tax cuts effect on Government:

Tax cuts effect on Government Government Service jobs = Operate Government & Services Money coming in via taxes Money Going out Services for the community & more taxes Income tax from people + businesses + property taxes = the majority of money to operate the local and federal governments. Eliminate business taxes and the others have to cover the expense while services that benefit average people are cut – because not everybody is paying their fair share. But with foreclosures, banks aren’t paying property tax so it ALL comes from YOU while you get less for the money – you are paying MORE and getting LESS Gov Services include: Fire, police, schools, libraries, Center for Disease Control, Food Safety inspections, Social Security, Driver’s License offices, Environmental protections, maintain roads and bridges, weather warning services etc. All on YOU

Break the Cycle:

Break the Cycle Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left after Taxes = PROFIT Budget keeps cycle going with more product bought etc INFUSING MONEY TO THE AVERAGE PEOPLE (called a stimulus) IS THE BEST PROVEN WAY TO BREAK THE CYCLE (stimulate the economy and maintain or create more jobs because demand stays steady or increases.) The most effective stimulus is to extend unemployment benefits that go directly into the community. TAX BREAKS GIVE MORE PROFIT TO OWNERS/WALL STREET!

Less Money Going Out?:

Less Money Going Out? Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left after Taxes = PROFIT What about paying employees less, or raising product prices, or buying a less quality product and selling for the same price? How about shipping jobs overseas to another country with cheaper workers? Typically that just creates more PROFIT – not more jobs. Employees aren’t the ones who benefit, but the owner, executives or the Wall Street investors.

Union’s Impact:

Union’s Impact Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left after Taxes = PROFIT Unions fight for the working class and have won job benefits that a large majority now take for granted. 40 hour work weeks, paid overtime, a living wage, paid sick time, work place safety, even the child labor laws. Unions created the middle class that have made America so prosperous . But large corporations would like to eliminate them to cut those costs and make more… PROFIT for the owner / executives / Wall Street.

Education’s Impact:

Education’s Impact Middle Class Big Business = Pay Employees Cost of product Utilities etc. Money Coming in Money Going out What is Left after Taxes = PROFIT State (and Federal) Government have been cutting education finances under the excuse of balancing budgets. But the better education the populace receives, the better paying jobs they get after high school or college = a future strong economy.

Public Employees:

Public Employees Middle Class Government Service jobs = Pay Employees Money coming in via taxes Money Going out Services for the community & more taxes State (and Federal) Government have been cutting public employee financing under the excuse of balancing budgets. But it is the same formula EXCEPT it doesn’t make somebody else wealthy. These jobs provide services to the community and keep money circulating in the community as well as partially paying for themselves via the taxes they pay. WIN-WIN

Conclusions:

Conclusions Tax cuts to Big Business and the wealthy don’t create jobs – but means more profit for owners / Executives / Wall Street pockets – and you end up paying more to make up for their not paying. Union busting is all about profit for the usual suspects Public employees don’t necessarily hurt anybody, but do provide services for the community & keep money in the community cycle Unions exist to protect workers and created the vital middle class that has made America prosperous Cutting education financing will only further hurt our economy and remove the middle class in years to come

Final Conclusions:

Final Conclusions Stop the tax cuts & put money into the communities via stimulus and jobs programs Keeping the middle class strong is the most critical job for this nation The middle class work hard and are the engine keeping America strong – that must be protected to keep America safe Royalty Free Music is “Radio Martini” by http://incompetech.com/