Links or theories on the time cost of money?

Discussion in 'Economy' started by Toronado3800, Jan 1, 2010.

  1. Toronado3800

    Toronado3800 VIP Member

    Nov 15, 2009
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    Perhaps I'm not using the correct words. What I am trying to determine is the cost of any purchase or taxation based on the time it takes the money to recirculate.
    My thought is: If I go to the doctor and get an absolutely pointless test done it may cost me or my insurance company $1,000. The doctor and hospital get that money. In turn they're able to spend it buying more of the product I produce. America does not lose it. If the test saves me some trouble by revealing I'm lactose intolerant or whatever it betters my standard of living and allows the wheels of the economy to keep turning.

    There is a cost to me though in that I don't have the $1,000 to spend on maintenance to my car if needed.
    If the government taxes me $1,000 and spends it domestically then that $1,000 will be distributed back to my neighbors after they help build an aircraft carrier, rebuild a bridge or SOMETHING the government spends money on. In turn contractors, their employees, federal employees, have more money to spend on products I go to work to create. No wealth is lost, in fact SOMETHING is done which should better our lives.

    Once again though there is a delay cost to me during the time the money takes to circulate back into my pockets.
    Does anyone have a good theory or article for me to read on this cost? Besides any theories on government inefficiencies vs private business efficiency. I accept failings of human nature on a large scale make those with "guaranteed socialist jobs" work less efficiently.

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