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money's velocity of circulation (the number of times the money changes hands in a given time period), P is the price level, and Q is the quantity of goods available. If V rises, other things equal, so will P. Thus, an increased velocity of circulation of money fuels price inflation. Americans are already suffering from mild but steady inflation, and any change that reduces it and stabilizes prices will be a welcome one; it will prevent Americans' hard-earned savings from being needlessly eroded.

Objection 3: When there are a lot of tax cuts, it does not always promote a proportional growth because people are investing as much or more than they are consuming, and consumption is what drives the economy. The rich will not buy anything that really promotes economic growth with the money they obtained from tax cuts.

Refutation: This is a Keynesian fallacy which presumes that consumption is responsible for economic growth and prosperity. Quite the contrary, it is savings and investment which make possible capital accumulation and thus more efficient production of goods and services and research into new methods of production. Capital is the stock seed of the economy. The more seeds one plants, the greater a harvest one reaps. If one consumes all or most of one's stock seed, one's future harvest will be correspondingly diminished. The more one forgoes present consumption and invests one's resources into the future, the greater one's future rewards. The more one consumes of one's present goods, the less productive capacity is left for the future. So it is with a whole economy; the more capital is accumulated now, the higher living standards and productivity will be in the future.

Thus, let the wealthy invest the money they receive due to tax cuts; it will improve everybody's quality of life as a result. Investors do enable the creation of goods to promote economic growth; the money they loan to banks, corporations, and entrepreneurs gets invested into productive equipment which fuels economic progress. Adam Smith's invisible hand principle works here as in all economic cases: let people dispose of their money as they see fit, and universal benefits will result.

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