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To: Kaslin
Government spending also goes into the GDP at cost no profit added. So as the Federal government spends it artificially raises the GDP.

Look at China. They have built about a dozen cities where nobody lives. All that spending goes to GDP but adds no real wealth.

8 posted on 04/28/2012 9:11:35 AM PDT by Mikey_1962 (Obama: The Affirmative Action President.)
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To: Mikey_1962

government spending is a net negative to the economy, it sucks out investment in the real economy. Government is so inefficient that it couldn’t do anything else.


15 posted on 04/28/2012 3:17:50 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Mikey_1962
So as the Federal government spends it artificially raises the GDP.

GDP is another invention of the Keynesians. It measures consumer and, as you said, government spending. It completely ignores business-to-business spending which is larger than consumer spending.

That 70% of the US economy is dependent on consumer spending is a complete falsehood -- it's more like 30% or 35%.

Why? Because the Keynesians claim that economic growth consists in more spending -- not investment. Dumb and wrong.

17 posted on 04/28/2012 4:23:35 PM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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