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Subject: You conflate current GDP with GDP growth.
Posted by: Traveller on Mon Feb 20 2012 3:22:07 PM
Message:

You are correct in that, the way GDP is calculated, it should not change
in a given year so long as government spending and/or transfer
payments are equal to tax revenues. The real issue is GDP growth,
which requires investment in research, capital, and processes that
make labor more efficient. The argument is that, by taking money away
from individuals and business that make such investments (or reducing
the volume of investment capital to borrow in order to make such
investments), you get less GDP growth in the long run.

Current Thread:

   The Economic Effects of Capital Gains Taxation  --  Abe Vigodas Head   Mon Feb 20 2012 8:20:27 AM
      Well, any amount of capital gains tax  --  ryno hoo   Mon Feb 20 2012 11:13:23 AM
         I buy the efficiency argument, but question the GDP claim  --  Stimp   Mon Feb 20 2012 11:39:01 AM
            You conflate current GDP with GDP growth.  --  Traveller   Mon Feb 20 2012 3:22:07 PM
         That's exactly right, ryno. Well said!   --  KaHOOnah   Mon Feb 20 2012 11:26:02 AM
         Well we still need revenue, even if spent inefficiently.  --  Hoodafan   Mon Feb 20 2012 11:17:52 AM
      I still don't believe the data is nearly as compelling as   --  111Balz   Mon Feb 20 2012 10:02:05 AM

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