If you own a business and the government took some of your money and gave it to someone else to spend in your store, have they benefitted you by creating a customer for you?
That sounds like Bernie Sanders' idea of a sound and progressive economic policy.
Sounds like the business owner got robbed.
If it's a good business, it doesn't need the government's help getting customers. If it's a bad business that needs help getting customers, it shouldn't last long anyways. Capitalism.
Punish the hard working, reward the lazy, makes sense...
That's not sound logic.
True. Yet somehow this idea popular when presented as taxing businesses more is good for them because the redistributed money creates customers for them.
Any money they took is profit, and then spent to rebuy is COGS plus profit. If your profit is 6% you lose 94%.
Agree. Dumb, dumb, dumb.
That literally means they get the good for free (or if they don't buy that money's worth or don't buy at all, they get money). It's like the SpongeBob episode where SpongeBob gave Patrick a quarter to spend on the bubble lessons he was giving.
If this weren't effective, there would be no such thing as free samples.
If it's a good business, it may benefit. That customer could become a long-term customer, coming back multiple times over several years. They can even bring in new business by word of mouth. They can refer friends and family members who come in to spend some of their money. I think that's better than if the customer never set foot in my store.
Six pence none the richer.
The government has just increased the price to place that product on the shelf. The store owner passes this cost along to the consumers. The store owner does not pay the tax, the consumers pay the tax. So, the poor paid more for the government to "create" another customer.
It's even worse when that potentially customer goes to a different store.
That's only true if you give away a free sample that is minuscule in value compared to what the customer ends up buying.
Probably not considering the government will take a considerable amount for them selves
No, it was just a looker. 😂
Yes, of course. Health Insurance, Day Care, Super Markets, the Military Industrial Complex, the Construction Industry and the Pharmaceutical Industry all benefit enormously from taking tax money and putting it back into the economy.
If they spend more than the government took, then yes, it helped you (a little bit.) If they become return customers then even better.
Yeah I guess there's a difference in value. If the government just gives a guy a car from the Ford dealer, it doesn't necessarily mean he'll come back again to buy another car.