teapartysamurai
Gold Member
- Mar 27, 2010
- 20,056
- 2,562
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- #81
Do you know the difference between nominal and real gdp?
I have a passing familiarity with the topic at hand.
no, it's not. By that way of thinking, all incomes should be taxed based on their previous value since GDP is a measure of income.
indeed. It's so universal that even investors are aware of it! That doesn't change the fact that a 5K investment that is now worth 6K is more profitable than a 5K investment under your mattress - though not as profitable as a 5K investment in TIPS.
The government measures real GDP in order to measure the total amount of goods and services produced. The GDP deflator is how they separate actual production from income due to changes in the money supply.
The opportunity cost of investing money in something that creates a $1,000 nominal return is the $0 return they would have made had they kept it under their mattress. Of course, another opportunity cost would be TIPS, but they didn't buy TIPS. They risked capital instead.
I had a class at the local juco once. how about you?
Oh, speaking of mindless imbeciles then: Does the IRS allow your employer to collect less in taxes and allow you to pay less in nominal taxes as the year goes on to make up for the inflationary effects on your income over the course of the year? I'm sure they do and I'm just a mindless imbecile who never noticed this.
if you had invested in, for example, June of 2008 and realized those gains today, you would need to pay additional taxes because the adjusted value of your investment has greater purchasing power now than it did then.
But with your superior intellect, I'm sure you know this already. After all, I'm just a mindless imbecile.
GET A FREAKIN CLUE!!
That's exactly what I was thinking.
The bolded part is all I need to know to realize you don't know what the hell you're talking about. Current year income, i.e. from a job, is paid in current year dollars. We're talking about comparing prior year outlays with current year receipts. They are apples and oranges. If you don't understand that, go back to school. You learned nothing. I don't have time to waste with the rest because I'm in school actually learning something, so I have other responsibilities to attend to.
I think he's like my oldest, who's in college.
She's an "adult" still lives at home and just hasn't experienced the real world of the shrinking dollar.
He is being told all this theoretical stuff about the dollar, but anyone paying bills over that 10 years would know it's BS.
That's why a lot of 20 year olds are liberal and a lot of 40 year olds are conservative.