Econ 101
Senior Member
Joined: Aug 1999
Posts: 1,506
Likes: 0
From: Bakersfield, CA, USA
Good points, 1depd.
Re: liberal arguments, one I see popping up lately is "GDP growth is more rapid than during Reagan! GDP is far higher per capita than it's ever been! That proves the economy is good!"
Well, the problem with that argument is that GDP includes government spending. IOTW, the private sector can be shrinking slowly and the government sector can be growing rapidly, resulting in rising GDP. IMO, GDP is becoming another less meaningful number.
Like the unemployment rate, GDP used to mean something else, when government spending was within reason and the books were not being cooked.
On the point of pay vs. responsibility, I was told many years ago, "You don't get paid for what you do. You get paid for the responsibilities you have." People who have jobs where they hold no responsibility don't like it, but that's the way it works.
Re: liberal arguments, one I see popping up lately is "GDP growth is more rapid than during Reagan! GDP is far higher per capita than it's ever been! That proves the economy is good!"
Well, the problem with that argument is that GDP includes government spending. IOTW, the private sector can be shrinking slowly and the government sector can be growing rapidly, resulting in rising GDP. IMO, GDP is becoming another less meaningful number.
Like the unemployment rate, GDP used to mean something else, when government spending was within reason and the books were not being cooked.
On the point of pay vs. responsibility, I was told many years ago, "You don't get paid for what you do. You get paid for the responsibilities you have." People who have jobs where they hold no responsibility don't like it, but that's the way it works.