DO THESE EXPAND
THE ECONOMY?

Not every economic activity can make the economy expand.
Here is a table to show which items expand the economy and which don't:

ECONOMY EXPANSION CHARACTERISTICS
OF VARIOUS ECONOMIC ACTIVITIES
Numbers are the economic multiplier used in most economic models.
KEY USAGE Significant expansion
2.00 ... 100
Moderate expansion
1.06... 1.99
Negligible effect
0.95 ... 1.05
Moderate loss
0.51 ... 0.94
Significant loss
0.01 ... 0.50
TRAIT
NOTES
Notable gain Note this
Beware Major warning


PRIVATE SECTOR
Economic activity Expansion Reason
Food production 5.00 Essential economic operation; product produces ability to work
Production of necessities for sale 4.00 Essential economic operation; product produces ability to work; includes water, food products essential clothing, housing, businesses, transportation, and medicine
Production of tools and utility products for sale 3.00 Essential economic operation; product produces ability to work
Production of luxury products for sale 1.25 Nonessential economic operation; product produces little ability to work
Production of entertainment 0.98 Nonessential economic operation; product competes with ability to work
Playing professional sports 0.96 Nonproductive economic operation; no product; can produce nonworking person through injury
Playing amateur sports 0.85 Nonessential economic operation; competes with ability to work; no product; can produce nonworking person through injury; can produce small delayed ability to work
Attending sports 0.98 Nonessential economic operation; competes with ability to work; can reduce work done during event; slight recreational effect; no product
Watching sports on TV 0.92 Noneconomic operation; no work or product.
Sports products 1.02 Nonessential economic operation; no regeneration
Creating products having to do with music or the arts 1.00 Useless economic operation; wastes ability to work
Attendance or purchase involving music or art 0.95 Useless economic operation; wastes product of work
Recreation 1.50 Can rebuild ability to work; takes time away from work
Private education delayed 5.00 Essential economic operation; product produces delayed increased ability to work
Gambling 0.50 Wastes product of work; no product to sell
Theft and other money crimes 0.10 Destroys wealth
Loans with interest 0.90 Transfer of wealth with no product being produced destroys Kinesian wealth
Rental of property 0.80 Transfer of wealth with no product being produced destroys Kinesian wealth
Construction of buildings for dwellings or business 4.00 Produces either necessary housing or a factor of production
Construction of buildings for sports or the arts 0.80 Money wasted on nonproductive arts venues, sports arenas, walking trails, and other unnecessary structures, is destroyed wealth and wasted land use
Doing business paperwork 0.80 No product to sell
Government-required paperwork 0.40 No product; wasted effort

PHILANTHROPY
Economic activity Expansion Reason
Food giveaway 4.00 Produces ability to work
Donated education delayed 8.00 Essential economic operation; delayed increased ability to work, no cost to pupil
Loans without interest 2.50 Can rebuild ability to work, produce factors of production
Construction of houses from donated materials and labor 8.00 Produces needed housing
Aid given to people who are unable to work 1.09 A small economic loss, but a gain to the giver
Aid given to people who could work, but refuse to work 0.20 Destroys all of the wealth donated
Private endowment for the arts 0.40 Destroys most of the wealth given
Donated construction of buildings for sports or the arts 0.90 Money wasted on nonproductive arts venues, sports arenas, walking trails, and other unnecessary structures, is destroyed wealth and wasted land use

GOVERNMENT
Economic activity Expansion Reason
Taxation (county, state and federal, under 10% of income) 0.96 Taxation under 10% provides necessary government services
Taxation (municipal and township, and other taxes over 10%) 0.10 Involuntary transfer of wealth with no product destroys much Kinesian wealth; destroys jobs
Fees for government services the law requires to be used 0.10 Involuntary transfer of wealth destroys much Kinesian wealth; this should be paid for from taxes
Fees for optional government services 1.70 Voluntary transfer pays for the services rendered
Food stamps for the working poor 1.10 Product produces ability to work; but inefficient method
Food stamps for those not working 0.40 Wealth destroyed, because the recipient is not working
Welfare and unemployment comp for those working 1.10 Product produces ability to work; but inefficient method
Welfare and unemployment comp for those not working 0.40 Wealth destroyed, because the recipient is not working
Highway construction 4.00 Provides the infrastructure needed for more jobs
Public works - necessary government functions 1.20 Provides the infrastructure needed for government to do vital services
Public works - not necessary for government to work 0.40 Tax money wasted on nonproductive arts venues, sports arenas, walking trails, and other unnecessary structures, is destroyed wealth and wasted land use
Public education delayed 2.50 Essential economic operation; produces delayed increased ability to work, inefficient method, best teachers not hired
Government endowments for the arts 0.10 Destroys most of the wealth spent
Government endowments for sports 0.10 Destroys most of the wealth spent
Government endowments for entertainment 0.10 Destroys most of the wealth spent
Government endowments for tourism and recreation 0.10 Destroys most of the wealth spent
Government provision of buildings for arts, sports, entertainment, and recreation 0.10 Destroys most of the wealth spent
Government funding for beautification, museums, monuments, and memorials 0.10 Destroys most of the wealth spent
Bureaucracy 0.15 Destroys most of the wealth spent; wasted effort
Government attempts to control the economy 0.10 These never have the desired effect; destroys most of the wealth affected; wasted effort
Minimum Wage 0.80 Causes inflation that undoes the real income gain; wasted effort
Price support payments 0.15 Destroys most of the wealth spent; causes inflation; wasted effort
Land use regulations 0.75 Destroys value of land; makes commutes longer
Pork-barrel for unnecessary projects 0.15 Destroys most of the wealth spent; wasted effort

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