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April 27, 2013
Speaking of Economic Numbers. They ain't what they used to be.
Here is the grand economic barometer. The GDP. (formerly the GNP) The Gross Domestic Product calculation. GDP = private consumption + gross investment + government spending + (exports − imports), When the Federal budget was balanced, it was a fair reading to put government spending into the calculation. Quite correctly, the same amount of money taken from the citizenry via taxes and fees by the government was then expended back into the economy by government ...equal quantities in and out. Balanced. Even. A fair calculation. Now, with deficit spending, the government spending number in the GDP is bogus. It is fallacious. Money from thin air pumped into the economy. What is produced? The GDP number is inflated. With the food stamp program, and the initiative to expand the rolls of the recipients, we have an example of debt financed consumption. The government is borrowing money to give away to consumers. In the vein of the "broken...(Read Full Post)