How an Economy Works

The chart above is an example of a good economy. Each of the links in the chains is very important. If just one of the arrows are taken away, the economy will fall apart. The chart below shows what will happen if taxes from businesses to the government is taken away.

Uh-oh.... The Economy is doomed!

        The absence of taxes from the businesses resulted in a total economic crash. Since the government can't get enough money, it must raise taxes for the few payers left (the people). Not only does this result in the people having little money to spend on businesses' goods and services, but it still isn't enough to provide a social capital. Now, people can't get educated to run businesses, so people can't work, leaving people poor and unemployed, and the businesses can't make or sell goods. The businesses do very poorly, and investors in businesses are left in debt. The economy simply crashes.

    So, even though it's a drag, pay those taxes, or else you may lose even more money!