Not every economic activity can make the economy expand.
Here is a table to show which items expand the economy and which don't:
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ECONOMY EXPANSION CHARACTERISTICS
OF VARIOUS ECONOMIC ACTIVITIES Numbers are the economic multiplier used in most economic models.
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|---|---|---|---|---|---|---|
| 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 | ||
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PRIVATE SECTOR
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|---|---|---|
| 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 |
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PHILANTHROPY
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| 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 |
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GOVERNMENT
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| 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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