beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,392
There is very little economic advantage to money spent on yachts.
im sure the yacht building industry, as small as it may be, doesn't agree with you. what you probably dont realise or accept is that as productivity goes, its very high. it turns cheap commodity materials into very expensive items, paying a lot of people to do so along the way. more value creted, more positive economic effect. a state pension on the other hand, while very valuable to the recipients, does not add much, some would argue its a net cost. im not knocking the provision, of pension, health, education, we accept their inefficiency and determine the cost is worth it. i'm all for roads and rail and airports to be built, those are indeed some of the most productive ways to invest public money, unfortunately too many people don't want them near them, but that's another matter.
I think you have this the wrong way around. If a poor person falsely claims £100, that £100 will be spent in the local economy which necessarily creates jobs. If a rich person avoids £20m in taxes, this is likely to be invested in shares, bonds, oil, etc. to generate more income. The first produces jobs, the latter takes money out of the economy.
and what do you think the money invested in shares, bonds, oils etc go to? companies and governments to spend on investments, production of more services/goods and wages. its what the economy is, and pays for false claim many times over, though all the other taxes that are incurred along the way.