Affiliated School
Warren Buffett has asked Billionaires to Give Money Away Their Fortunes: " Mostly charitable organizations will be the one to gain most from the idea. This is because most of the money is aimed towards the discovery of a cure to molecular diseases and charitable acts like helping children. The wealthy felt philanthropic enough to give out part of their money back to the public in an effort to pay back for all the major sales and earnings from them.
The poor will gain from the idea because it is directed towards improvement of education and medical facilities by opening up new wings. This will allow people to have access to more and more and will improve on the health care. The poor will also be paying lower taxes; this will increase their purchasing or their ability to save money (Case, 1999). In turn more of them will make investments or improve their living conditions. More sales that target the poor will be made.
The middle class will be the ones on a losing end. This is because their facilities will not be improved and they will be charged higher taxes than they previously did. This will reduce their purchasing power as their income will reduce drastically. It will also affect aggregate demand by the middle class and the sales that target them will reduce. The large corporations will be losing, this is because there will be less money for them to receive from their investors. They will also be paying higher taxes because they belong to the billionaires of the country. Higher taxes not only reduce the working capital it also reduces the amount of capital yielded that was initially meant to be re-invested back into the firm. The large corporations will also start getting new competition as the firm that will be invested in especially in the bio-technology and medical fields will be coming up. This will reduce their sales and may even deter away some of their potential and already existing clients (Herendeen, 1975). In order to avoid losses most of these corporations will decrease the transaction motives like the daily expenses that they have.
The smaller businesses will be on the utmost winning side this is mainly because the funds are meant to increase the small business industry. They will receive more investments and will expand in terms of both physical and human capital. Some that are doing really well will franchise to other areas as well (Hamlin, 2003). There will be exposure to new information on how to best deal with businesses as the billionaires will be creating an interactive stage where information will be shared. The small businesses will become well structure and organized and this will lead to efficiency and increase in market.
I would personally receive some financial assistance from the idea; this is mainly because for long i have had a business idea that has only required funding and I will definitely contact the relevant people who will get me into the right road of getting the financing. This is because a good business starts from a good idea and a follow up to seeing the idea come to life. Once I have received the financial assistance I will be able to work towards the dream coming true.
References
Herendeen, B. James, (1975), the Economics of the Corporate Economy, Orthodox Print Press, New York.
Hamlin E. Roger, Thomas Lyons, (2003), Financing Small Business in America: the Debt Capital in a Global Economy, Pauline’s Press
Bettler, Harry, New York Times Article, (27,November 2012), Warren Buffett raises the Bar For Who Counts As Rich,
