Charles Payne: We Have “Zero Velocity of Money”

2

rob-peter-nrd-600-w-logo

Hillary Clinton will continue Barack Obama’s failed economic policies of stimulus, debt, high taxation and regulation. He is the first president to never hit 3% economic growth.

Charles Payne explained how Trump’s plan brings back “velocity of money.”

“So, here’s the thing and it’s right off the bat that you have to love about the plan; lower taxes, anyone watching, it essentially means that when you go to work, you get to keep more of the money you earn. You know, there is an interesting term that we don’t talk about a lot, it’s velocity of money. And — and in layman’s terms it’s pretty simple; if you take $5 and go across the street and buy a couple of hot dog from a hot dog vendor, he takes that $5 and buys a scarf from a scarf vendor, that person goes in McDonald’s and buys two cheeseburgers, that’s the same five bucks ha circulated through the economy.”

“We have zero velocity of money right now. Why? Well on the business side, businesses are afraid of these high taxes and regulations. And on the individual side people’s wages aren’t going up. So why would you spend money like that? Lower taxes unlocks that. Lower taxes unlock that. Then on the regulation side, we’ve got to get rid of them.”

Barack Obama has passed 20,642 new regulations. People are committing crimes every day that they don’t even know they commit. The cost is over $100 billion annually for these regulations and the costs will increase exponentially.

2 COMMENTS

  1. The Tale of the $100 Bill

    A bald-headed bearded stranger stopped in town and went into an small old hotel to check in. He asked to go check out the rooms first so, in good faith, he left a $100 bill—a deposit of sorts—with the hotel owner. The hotel owner immediately ran next door to pay his grocery bill. The grocer ran it across the street to pay one of his suppliers. The supplier used it to pay off his co-op bill. The co-op guy ran it back across the street to pay the local hooker who had taken up residence in the aforementioned hotel. The hooker ran it downstairs to pay her hotel bill just ahead of the returning traveler, who picked the $100 bill off the desk and left saying that the rooms were not satisfactory.

    Same myth as Nancy Pelosi’s remark, “A dollar of government ‘investment’ creates a $1.76 of economic activity.”

    All of this sounds great until the reality check happens. You must provide something of value to create wealth and customers who are willing to buy it.

  2. The Tale of the $100 Bill

    A bald-headed bearded stranger stopped in town and went into an small old hotel to check in. He asked to go check out the rooms first so, in good faith, he left a $100 bill—a deposit of sorts—with the hotel owner. The hotel owner immediately ran next door to pay his grocery bill. The grocer ran it across the street to pay one of his suppliers. The supplier used it to pay off his co-op bill. The co-op guy ran it back across the street to pay the local hooker who had taken up residence in the aforementioned hotel. The hooker ran it downstairs to pay her hotel bill just ahead of the returning traveler, who picked the $100 bill off the desk and left saying that the rooms were not satisfactory.

    Same myth as Nancy Pelosi’s remark, “A dollar of government ‘investment’ creates a $1.76 of economic activity.”

    All of this sounds great until the reality check happens, i.e one must provide something of value to create wealth and customers who are willing to buy it.

Comments are closed.