Quote:
Originally posted by QRQ 30
Less payroll equals less spending. This reduces the income of states and local government.
Less payroll means les consumer spending which leads to less need for sales personnel, which leads to further un-employment.
Less spending leads to reduced production, again increasing un-employment and goverrnment income. It's a horrible tail-spin. The solution may eventually be to return to an agrarian society. The question will no longer be: "How are you going to keep them down on the farm?"
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People aren't guaranteed jobs. But if people are spending less on taxes, they are more likely to be investing in the economy (either by actual investment, by saving or by consumer spending).