When consumers decide to buy more products in the market, the raw materials and labor used to create the product will increase as well. The downturn in the economy was primarily caused by a decrease in spending in the market because people were afraid to spend their money. When Americans have access to more money through paying fewer taxes, they will be encouraged to start spending in the market again, creating more jobs, therefore, creating more wealth. Example: People have more money from paying fewer taxes, people in the average income bracket decide to splurge the money saved on buying more luxuries. (ex. home entertainment systems, computers, smartphones) These items require several raw materials and labor for production and sale, which will create jobs. These jobs will pay these employees creating more wealth in the country. |