One_Life_To_Give
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Thu Feb-05-09 01:53 PM
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Should a 10% GDP Stimulus reduce |
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the federal unemployment rate by 10% as well?
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Zynx
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Thu Feb-05-09 01:55 PM
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1. GDP and unemployment have a relationship, but it definitely is not 1 to 1. |
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You can grow GDP by 2% a year and still see unemployment rise due to gains in productivity and growth of the labor force. You generally have to be growing by at least 3% per year to see unemployment fall.
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ixion
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Thu Feb-05-09 01:56 PM
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2. A 10% of our GDP 'stimulus' created from thin air and borrowed money |
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only puts us deeper in the hole.
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Zynx
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Thu Feb-05-09 02:08 PM
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3. I suppose WWII spending did absolutely nothing but crank debt up to 120% of GDP. |
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No positive effects or anything. I'll ignore that 150% increase in GDP.
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ixion
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Thu Feb-05-09 02:15 PM
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4. the difference is this: back then we made things |
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we had a manufacturing base that drove that recovery. The service industry will most certainly not be able to perform this function, and we no longer have much of a manufacturing base here.
That said: if the money were spent on invigorating manufacturing -- if we went back to making things -- we would recover much better.
However, handing out more taxpayer dollars to inside players will not accomplish this, IMO.
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Zynx
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Thu Feb-05-09 02:18 PM
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5. We have the world's highest industrial output by shear dollar volume. |
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We are the largest producers of capital equipment. If money is spent there that is very positive.
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DU
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Fri May 03rd 2024, 08:36 PM
Response to Original message |