Zander
Platinum Member
Let's start with a simple formula-
GDP = C + I + G (+ or - Net Exports)
C= Consumption (normally the largest component of GDP)
I= Investment or Savings
G= Government spending
If we cut G (Government spending) we are going to have lower GDP, obviously. But is that going to cost jobs? Probably. But it doesn't matter. Obama's and Krugman's idea of "new jobs" is to create more Government jobs. The problem is Government jobs are non-productive. Government already consumes about 44 percent of GDP. This means the average American worker has to produce enough goods and services to support himself—and the overpaid, non-productive government worker.
Actually it's closer to 20%. And government doesn't consume GDP, it creates it. And the average government worker creates value not just for himself, but for everyone who benefits from his services - whether they're students, drivers, people who just enjoy living in a free, democratic country.
So, pretty much everything you said was wrong.
No, it actually about 42% for 2011- $6.2 trillion of government spending on $15 trillion of GDP
Let me google that for you
So following your logic, pretty much everything you said was wrong.
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