Economy Flow Charts

I think I've learned more about economy during the recession than during my economics class in high school! Here's my simplified explanation of what leads to what.

1. People need money in order to buy stuff.
2. Without jobs, people don't have money to buy stuff.
3. If people don't buy stuff, many industries some some income.
4. When industries lose income, they have to lower salaries or lay people off, and the cycle continues.
   

Here's a simplified flow chart for taxes:

1. The government needs money to operate.
2. Government funding comes from taxes.
3. Without jobs, people don't pay taxes and they need government assistance.
4. When the governmenet has less income and more expenses it must raise taxes on others.