Uncensored2008
Libertarian Radical
Okay I did see this and I didn't respond because you were not addressing the concept. While you are no liberal by anybody's imagination, you did exactly what they did. You changed the subject rather than address the statement I put out there. The concept was not whether there is appropriate use of taxpayer money or whether the government has done anything with positive results and I kept politics strictly out of it. The concept was whether public assistance to those who don't earn or work for it adds to the GDP. The concept had no right or wrong, virtue, or morality attached to it.
The rationale I provided though DOES address some of the pros and cons of government spending, which is a whole separate subject from the GDP.
I gave everybody every chance to gig me for a flawed concept. Nobody did. Everybody was too eager to focus on something less concerete, more vague, more fluid, more 'feel good' or whatever.
Murray Rothbard slammed Keynesian guru John Kenneth Galbraith on this back in the 60's. The basic logic being that IF the concept of turns has merit in regard to infusing currency into an economy, then by extension, the removal of currency will likewise result in turns.
You are addressing the same mechanism here. The left claims that deficit spending will create economic activity in excess of the initial currency infused (note that I'm careful to say currency, and not capital, because Keynesian stimulants add no actual capital.)
Rothbard competently demonstrated that removing currency from the market to fund welfare payments, would trigger an identical set of factors and REDUCE economic activity beyond the amount of currency removed. In this way, every dollar taken from productive sectors to give to unproductive people, resulted in a loss of economic activity at each turn, rendering the classic Keynesian 1.56 in three turns ratio, into a loss of activity.
No doubt Lord Keynes was spinning in his grave, Galbraith was left stuttering - a Rothbard specialty.