Phatscotty wrote: waauw wrote: Phatscotty wrote: BigBallinStalin wrote: waauw wrote:Maybe the big question at hand should be: should the government really be targeting GDP maximisation?
The US is known to have a very big GDP/capita, higher than those in european countries, even countries like germany. Yet in some european countries the people(middle class and lower class) live better lives than they do in the US.
Keep in mind the Kuznets curve below and keep in mind that income here is actually GDP/capita
They shouldn't. Because GDP doesn't mean much. Since it looks good on paper and as rhetoric, then there's no surprise that it gets targeted often (e.g. public works programs, "creating jobs," etc.).
Isn't America's military spending still counted as GDP "growth" and burger flippers counted as "manufacturing" jobs?
The numbers are so fudged and the formula's so abused, it's becoming ridiculous
GDP= all government expenditures + (export - import) + consumerspending + investments
==> This is why too few americans have savings(more spending) and why the government spends too much money. It makes things look better.
I would even assume, that in a consumption based economy, all things relative, an increase in % of people who spend all their $ every pay period would probably boost the economy and create more jobs, while a considerable decrease in the % would result in job losses and a weaker economy
You finally fucking nailed it. Its the money in the lower sectors of the economy that makes the economy, because those sectors, to some degree, must spend the money. You give a tax break to a multimillionaire, they can save every bit of it, while if you give it to the lower sectors, it works its way into the economy, almost immediately. The reason the economy was demolished at the end of the Bush years, the brink of collapse...was because the tax breaks and incentives were given all at the top. As Ive mentioned before its not all or nothing, its only a matter of percentages...you cant give too much away to rich or poor, but the right percentage is exactly whats needed. If we all saved, there would be no economy.
Its why the economy suffered so bad...its not because there was less money, that's all relative....its because the people with it, stopped spending it because of fear....but also because they didnt have to.
I myself am in a business and offer a service that is absolutely unnecessary in almost every way. Most of my services can be done by anyone...if not as well...or not done at all. Some multi-millionaires choose to have me do it, and it allows me to buy things to employ other people, who spend money to employ other people. If everyone clamped up...didnt spend anything...the economy would collapse. Its why the income at lower levels is important, and why a top heavy economy is inherently dangerous.
If all the money is in one place, where it can be held hostage...which at times it very much is...systematically or not....the economy collapses. If too much is just given away, people stop producing, and money is wasted. Its why extremists like you are the problem in this world, and moderates, who are too busy working and building the world, just shake their heads at your utter stupidity...or occasionally take a few seconds to have fun pointing it out.