The Big Business Economy

I am not an economist, and I don't have an academic language about macroeconomics,  but I have read some books on economics and keep track of the political point-of-view on the economy.  There is a thought that I have been having about my own habits and the subsequent impact on the economy around me.


The topic is this: what is supposed to happen when the Republicans fully reduce taxes for wealthy big business?  If I understand correctly, the reduced tax burden on businesses is supposed to free more of their revenue, causing them to "invest" in their businesses.  I have taken this to mean that they will grow their business and ultimately need more employees, thereby creating jobs.


There is one small aspect of this plan that I've been thinking about.  Christopher and I try to live simply so as to minimize our impact on the environment.   We are avoiding buying "reusable" stuff as much as possible (napkins, paper and plastics).  We enjoy shopping at Goodwill stores and finding awesome stuff without having to go "new".  It makes us feel good.  The problem is this, if we aren't buying stuff, then who is?  When I was a child, Goodwill stores had a stigma: only the poor shopped there.  My mother would not shop there as a matter of pride.  She loved new things and felt good providing "stuff" for us. How many people still live how my mother did?  I hear of people buying stuff at Goodwill all the time, and it is not spoken about in shame, but with pride of finding something "cool".


Add to that the Dave Ramsey effect.  Dave is on a mission to get more and more Americans living debt-free.  Christopher and I have been influenced by this movement.  Our house is paid off, our cars are paid off, and when we want something big we save up for it before we buy it.  Because we have few recurring expenses, saving up does not take long.  But, if we are not paying off a loan, then some bank is not making interest off of us.  The more people get out of debt, the less interest banks will make.  Again, I am no economist, but I can only conclude that this trend leads to fewer jobs (banking jobs).


So what's going to happen?  The big business who sells a widget will have a tax break and how will they spend their money expanding?  I'm guessing the first thing they will do is get more aggressive about marketing to their target demographic to get them to buy more, more more.  What happens when that demographic contains lots of people like me who are happy living simple lives and really don't want more, more, more?