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Cake day: January 17th, 2024

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  • In general each dollar given to the poorest in an economy adds more to economic growth. That’s because the velocity of money is also important. The person living on a marginal wage tends to buy essentials first and spends a greater proportion of their income. Some of that may go to local businesses who in turn spend locally with tighter margins. The faster money travels from hand to hand and the more participants the larger is the overall benefit. Alternatively you can subsidise something everyone needs like healthcare and education. That’s effectively the same as putting money in everyones pocket but the benefits are more targeted.