Comments on: You Can’t Ignore Numbers http://americanlyyours.com/2009/02/20/you-cant-ignore-numbers/ Promoting Free Markets, Free Trade, and Freedom! Fri, 13 Aug 2010 19:15:02 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Anand http://americanlyyours.com/2009/02/20/you-cant-ignore-numbers/comment-page-1/#comment-160 Anand Fri, 27 Mar 2009 19:49:58 +0000 http://americanlyyours.phredbarnet.com/?p=152#comment-160 I appreciate your time in doing this. While I am leaning more towards the stimulus plan (cause we need it), I gave your argument some thought. Unfortunately, we are caught between a rock and a hard place right now. I do not pretend to have the right answers either. The problem with your illustration (and I have not opened your Excel file due to security concerns these days) is that you have not factored in the 'velocity of money'. This is the powerful weapon! Higher velocity means more revenue generated for businesses and that means more taxes collected. It also means more people hired and the cycle carries on. I appreciate your time in doing this. While I am leaning more towards the stimulus plan (cause we need it), I gave your argument some thought.

Unfortunately, we are caught between a rock and a hard place right now. I do not pretend to have the right answers either.

The problem with your illustration (and I have not opened your Excel file due to security concerns these days) is that you have not factored in the ‘velocity of money’. This is the powerful weapon! Higher velocity means more revenue generated for businesses and that means more taxes collected. It also means more people hired and the cycle carries on.

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