If we cut spending by 40%, then we should reflect upon the implications of the equation:
GDP = C + I + G + NE
where C is consumption, I is investment, G is government spending, and NE is net exports.
Cut spending by 40% and GDP declines sharply. If you like the present recession, you'll just love the greater depression.
There is no good solution. No matter what happens, it will hurt.
Yeah - I’m fully aware that a spending cut causes major pain in GDP. I’m ready for the country to suffer for that. Because, honestly, we have to if we want to ever get back to a proper private economy.
Oh please.
Government spending is a net NEGATIVE for the economy. They suck the blood from the economy. They produce NOTHING.
Cut 40% and watch the economy bloom.
GDP = C + I + G + NEIf you cut government spending by 40%, consumption will increase dramatically since people will worry less about the future financial picture, private investment will soar for the same reason and because they will know their taxes won't be raised, and exports will eventually increase due to more investment but decrease also due to less downward pressure on dollar.
where C is consumption, I is investment, G is government spending, and NE is net exports.
Cut spending by 40% and GDP declines sharply. If you like the present recession, you'll just love the greater depression.
Their massive cash infusions have done little to the overall economy. Why would any cash defusions ? People are hunkered down right now. What DC does matters little. IMHO. The Globalists on the other hand, will lose some of their shirts, which is why all their sycophants in the MSM are ranting and raving..
Are we already over the cliff? I’ve actually seen the printed statement that we have to raise the debt limit, otherwise the government can’t borrow the money it needs to pay its bills. It seems to me a short step to s/bills/interest/ ... then what? BANG! ZOOM! To the moon Alice!
Yes, that's the official definition of Gross Domestic Product.
But, I contend it should be:
GDP = C + I + NE as governmental expenditures don't contribute to real growth.