Spending multiplier Defined
The spending multiplier makes reference to a concept whereby a rise in spending leads to a higher nationalized income. Or the increased demand of a product or service increases the production of that product or service.
In employment, people work harder to produce these items as a means of having a greater chance of having them themselves and assist in the increased production which ultimately increases national income. However, this is not done to benefit the employees, but to benefit the profits of a company and ultimately the overall economy. Most employees will spend money as a result, increasing the demand, but never getting money back for their contributions.