Truckers have to move the ingredients to the drug factory. The trucking industry benefits as do the truck building industry and the diesel producing industry.
Pharmaceutical scientists' learn how to produce the drug. Their education and value increases.
New workers are needed to produce the drug. Our work force benefits.
Truckers have to move the new drug to the pharmacies. The trucking industry benefits as do the truck building industry and the diesel producing industry, a second time.
A doctor has a new medicine to help his patients, his/her business increases.
Retail employees have another product to sell making their jobs more valuable and secure. They and their company benefit.
The consumer has to drive to pick up the drug. The automobile and gasoline industry benefit.
The consumer's health improves and he/she again become contributing members of society. Society benefits.
As you can see, not just the pharmaceutical company's position is improved but other businesses, all of which make up a portion of the economy, improve too. This is an example of how one thing lifts up many other sectors of the economy.
This increases the actual wealth of the United States' economy and if no additional dollars are put into circulation, each dollar is a bit more valuable.
The wrong way-
Now let's look at what happens when the tail wags the dog!
More dollars are put into circulation without any increase in the economy (no new products, no new gold, no increased education, etc.).
Okay, time for an extreme and exaggerated example.
Say an ounce of gold is worth 100 dollars. So each dollar is worth 1/100 of an ounce.
Next day the amount of dollars in circulation doubles.
That means that each dollar is now only 1/200 of that ounce of gold! So, your dollar is only worth ½ as much.
Our Government giving money away whether to all citizens, irresponsible borrowers, illegal aliens, or foreign governments creates no value. This devalues our economy and our dollars.
Although giving money away is advertised as a stimulus for those receiving the money, the stimulus effect only lasts a short time then results in increased inflation a few months later. (Kinda like getting drunk to solve your problems- works until the next morning when all your problems are still there and you're hung over.)
A better way-
Make loans with interest to foreign governments (like China does).
Modify how we treat illegal aliens. (Insure they are productive naturalized citizens before allowing them to join our society.)
Make government benefits earned (anyone remember CETA? Or WPA?). “If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.”
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Okay, I admit that choosing the pharmaceutical companies was a bad idea. I find them charging U.S. Citizens ten times what they charge citizens of other countries is disgraceful as is the entire financial side of the medical industry (10 different prices for the same
procedure is wrong!).