How does a simple purchase contribute to the U.S. economy?
Answer:
You entered into a purchase contract. If you sign a contract for future delivery, it leads to action like an email or paper signed/ digital signed document and/or credit card transaction. Then the product is moved from some stage from factory or warehose and shipped. If it was yet to be produced, given your purchase contract, the raw material is procured ( maybe on bank credit) and processed and then produced and shipped. So a whole host of things had to take place either before or as well as after you entered the purchase contract and then really purchased it ( thatis got delivery and made your payment). Now these activities may be carried out by one person of one agency or a number of persons engaged in different entities down the procurement, processing, producing, packing, shippin, delivering, invoicing, banking etc. These people nedd to be paid for the work they have done. They are actually paid out of the $10 you paid for the purchase. This is how you contributed to the US economy by generating a demand for a product which in turn generateddemand for a seires of products and services. A demand generates a set of activities or in anticipation of your demand a set of activities were underatken. Your purchse and payment made all these activities valuable. When the people who among themselves got the $10 distributed as their incomes, they in turn demand something and spend. This is how economic activities continue.
If you had not purchased anything and no body did ( no exchange of any thing among any two persons or more, the economic activities will become stand still/ stop. You can now use the above clue.
The answer given by drbsen was very good and extremely insightful, however, just to be on the negative side,if it wasn't manufactured in the U.S.A.,it contributed very little.
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