It does make more sense when you stop to consider that more money in people's pockets stimulate the economy. It's why tax holidays generate so much revenue and economic activity. And the example the author used involving Henry Ford is great. Ford gave his workers enough money to buy his own cars and in this way increased business. And it's money changing hands among private individuals, instead of the government giving everyone money.
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It does make more sense when you stop to consider that more money in people's pockets stimulate the economy. It's why tax holidays generate so much revenue and economic activity. And the example the author used involving Henry Ford is great. Ford gave his workers enough money to buy his own cars and in this way increased business. And it's money changing hands among private individuals, instead of the government giving everyone money.