Re: Vastly improved economy?????

Posted by Bret4207 on December 19, 2014 at 05:30:48 from (64.19.90.196):

In Reply to: Vastly improved economy????? posted by Russ from MN on December 18, 2014 at 10:36:19:

Russ from MN said: (quoted from post at 15:36:19 12/18/14) What part of this don't some of you understand? Feb 09 Dec 14 8.3 unemployment rate 5.8 $12.5T Real GDP $16.2T -5.5% GDP Growth 3.9% $7365 Dow $1,7958 $1,044B Corp profit $1,842B $1,400B Annual deficit -$438B -7.1% Housing prices 5.1% 16.1 Uninsured rate 13.4% 186, Troops deployed 31,320 25 Consumer confidence 91

I note you don't include the Workforce Participation rate (down yet again to 62.7, where it was during the Carter recession and actually a much larger number since our population has grown by almost 100 million people), the number of people on food stamps (over 20% of households, 47 million people), the 109 million on forms of welfare, the National Debt which has risen over 103% under the current administration to over $18T. Our dollar is consequently worth much less now than in 08 or 2000 or at any time in living memory. A great deal of the reason the Deficit is down is because the funding was borrowed and added to the Debt. IOW, instead of running the nation on an IOU, they got a loan to cover the cost.

As far as the GDP, well, that's like using the U3 Unemployment numbers and not the U6 number. You are only giving a number for a part of the economy. The GDP includes gov't spending but doesn't subtract the cost to taxpayers. So a bridge to nowhere looks like an increase in GDP, but the cost is coming out of the taxpayers pockets. There's no real profit in gov't funding. If you want a real number on economic growth you have to take the GDP and subtract all gov't spending and investment (local, state and Federal) from that number. At this moment in time, GDP is at $17.1T. total Federal, state and local spending is reported to be almost $6.6T. (sources will vary) So that cut's your precious GDP by a 1/3 or more and drags that number way down. The current Debt to GPD ratio sits at almost 105% and the Govt Spending to GDP ratio is at 38%. That's all in the negative column. Look at it from another perspective, in 2000 there was about $597B in currency floating around out there, today there's $3.8T floating around. That's over a 500% increase. What do you think that does to the value of the dollar and what does it do to real GDP figures?

I don't mind when people quote numbers, but Keynesian economic models LOVE big gov't and gov't spending. It's a farce and has been for over 75 years. It's part of the reason that the numbers will tell us one thing and reality tells us another.As you put it, what part of this don't some of you understand?

This post was edited by Bret4207 at 15:35:15 12/19/14 3 times.

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