Sunday, 25 January 2009

How to create wealth

How real wealth is created.
An example a company produces 100 widgets per year.
70 widgets are costs for the company ie wages expenses etc.
Therefore the company has 30 widgets in savings.
At the end of the first year the company decided to expand and exchanges the 30 widgets for plant and machinery to make more widgets.
The second year they make 150 widgets. That is how a company expands and grows wealth for the country.
Brown and his cronies want to throw money at the economy creating what, nothing.
How will it end inflation will lift it's ugly head taxes will shoot up interest will be raised and unemployment will rise just like it did in the US in the 30s

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