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