A Simple Lesson in Economics and Why We Need a Signature Festival

There is a room with three people with no money.

I walk into the room with a dollar.

I buy a candy bar from Person #1 for $1

Person #1 uses that $1 and buys a Pepsi from Person #2

Person #2 uses that $1 and buys a sandwich from Person #3

Person #3 uses that $1 and buys the candy bar from me.

The cycle continues.

The City of Alexandria charges a sales tax on each transaction and makes money.  If the COA had to pay me 10 cents to walk into the room then ultimately the investment would be worth it because of tax revenue.

Of course, the four of us need jobs because the $1 would eventually be consumed by taxes.  Government in turn promotes industry to ensure we have jobs in order to make sure tax resources are replenished.  Government can also help promote tourism, etc. to have financial resources pumped into the cycle.

I think I learned this in my freshman year at Pineville High School.

Let’s have a signature festival in Alexandria!  Just because a festival does not directly make the COA money immediately does not mean the economy as a whole will not be improved and ultimately generate tax revenue for the COA.

Cenlabration !!!!!!

2 thoughts on “A Simple Lesson in Economics and Why We Need a Signature Festival

  1. Ron Paul

    Sorry but you are wrong. By the time #3 gets back to you there is only 60 cents left after taxes. Screw the government.

    Reply

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