tag:blogger.com,1999:blog-36094163.post7927605362393188425..comments2022-11-23T08:54:20.788-07:00Comments on The Radical Liberal: Brian J. Gladishhttp://www.blogger.com/profile/08060107207216764612noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-36094163.post-51459210176339374502012-09-07T06:32:38.933-07:002012-09-07T06:32:38.933-07:00If we accept the calculations made by some who not...If we accept the calculations made by some who note that now, for every dollar borrowed and spent by the state, less than a dollar in new value is created, we can imagine that subtracting G in its entirety is closer than ever to reality.<br /><br />Karl Denninger's "economics posts" on his blog are very instructive in this regard. The implication is that, sooner or later, the excess "contribution" to GDP of government debt-based spending will collapse as a fact of simple mathematics. This now represents at least 10% of "official GDP," and add-on effects of such a collapse (since feedback loop effects are certain, as tax receipts will fall, too) will be unlike anything anyone living has ever seen.<br /><br />If we then assume that the underlying capital structure has been weakened by decades of neglect, it's easy to suggest such a contraction will exceed 30% of GDP. It could be 50% by the time a low is discovered.<br /><br />This is the effect of justifying decisions based on erroneous measurement of choices. If we "weigh" our potatoes with a broken scale, our choice of competing actions will be equally broken.dc.sunsetshttps://www.blogger.com/profile/08826161742700965939noreply@blogger.comtag:blogger.com,1999:blog-36094163.post-57788690985494360162012-09-07T06:30:06.553-07:002012-09-07T06:30:06.553-07:00This comment has been removed by the author.dc.sunsetshttps://www.blogger.com/profile/08826161742700965939noreply@blogger.com