Capitalism is such a dynamic, productive innovative system that despite the best efforts of the Biden cabal to destroy it and the nation, somehow talented, innovative people manage to continue to create wealth. Imagine the greatness if there were no Biden cabal.
Imagine the greatness if there were no Biden cabal.“
We don’t have to imagine we can remember what it was 4 years ago.
Imagine the greatness if there were no Biden cabal.“
We don’t have to imagine we can remember what it was 4 years ago.
Government spending is counted as part of GDP. But the vast armies of regulators who create regulations are an enormous drag on the economy. Not only are they an enormous drag on the economy, but they create huge uncertainty.
Imagine you are running a business and install expensive pollution control equipment to meet the PM2.5 standard of 12 micrograms per cubic meter. There is NO ROI or Breakeven on that equipment because it does not improve your productivity. Then, a couple years later, the government lowers the standard to 9 micrograms per cubic meter. You rip out all the equipment you just installed and put in new equipment for that standard.
Then (you guessed it), five years later they reduce the standard to 6 micrograms per cubic meter, so you rip out the earlier equipment that is still perfectly functional. The problem is, if it cost you $X to go from 12 to 9, it will cost you $10X to go from 9 to 6 (and $100X to go from 6 to 3 down the road).
None of this “costs” the government a dime (other than hiring the army of regulators) but imposes draconian costs on the economy.
So, the true way to account for government spending in the GDP calculation is flip the sign — every $1 spent by the government causes the economy to CONTRACT by $1.
Imagine if every evil person in the world vanished. A great weight would be lifted and economies would go ballistic.