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Monday, October 26, 2020

Krugman admits economists were wrong

 About free trade and globalization:

Paul Krugman has never suffered fools gladly. The Nobel Prize-winning economist rose to international fame—and a coveted space on the New York Times op-ed page—by lacerating his intellectual opponents in the most withering way. In a series of books and articles beginning in the 1990s, Krugman branded just about everybody who questioned the rapid pace of globalization a fool who didn’t understand economics very well. “Silly” was a word Krugman used a lot to describe pundits who raised fears of economic competition from other nations, especially China. Don’t worry about it, he said: Free trade will have only minor impact on your prosperity.

Now Krugman has come out and admitted, offhandedly, that his own understanding of economics has been seriously deficient as well. In a recent essay titled “What Economists (Including Me) Got Wrong About Globalization,” adapted from a forthcoming book on inequality, Krugman writes that he and other mainstream economists “missed a crucial part of the story” in failing to realize that globalization would lead to “hyperglobalization” and huge economic and social upheaval, particularly of the industrial middle class in America. And many of these working-class communities have been hit hard by Chinese competition, which economists made a “major mistake” in underestimating, Krugman says.

It was quite a “whoops” moment, considering all the ruined American communities and displaced millions of workers we’ve seen in the interim. 

Notice that they still haven't admitted that they're wrong about immigration and debt. But they still think you should listen to them, instead of the contrarian economists who have repeatedly been proven correct by events. It will be particularly amusing if he cites my labor mobility argument against free trade. I tend to doubt he will credit it properly....

What I find infuriating, though, is the way their own simple mainstream GDP models quite clearly predicted what will happen in a trade war between the USA and China. Any nation with a seriously negative balance of trade will automatically benefit from reduced trade and therefore win the trade war because a reduction in trade increases the (X-M) total. Reduce imports, increase GDP. The relationship is basic math.

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68 Comments:

Blogger Daniel October 26, 2020 1:09 PM  

Usually, it is the algebra they screw up in service to their idiotic transforms. Unbelievable that they don't know what the communist economists have been worrying about ever since Trump won.

Why couldn't our jackals at least be cunning? This is embarrassing.

Blogger carnaby October 26, 2020 1:16 PM  

So Krugman is voting for Trump this time then?

Blogger Vanished friend October 26, 2020 1:16 PM  

One has to wonder if Krugman and other economists genuinely make mistakes like that, or if pictures/video of them will be discovered in a hard drive leaked by Chinese dissidents someday.

Blogger Long Live The West October 26, 2020 1:25 PM  

"Reduce imports, increase GDP. The relationship is basic math."

Learned this reading a biography on a missionary to China, I believe... Hudson Taylor, when I was twelve.

The opium crisis in China made this relationship obvious. As always, the best lessons come from the teacher of real life experience instead of an arm chair philosopher.

Blogger Wadly October 26, 2020 1:26 PM  

Vox, how accurately does the GDP formula reflect the true size of a country's economy?

Blogger Joe Smith October 26, 2020 1:27 PM  

All of these guys' whole lives are them wetting their finger, sticking it up in the air, and trying to stay ahead of the Jones'.

Blogger Anglegrindermonkey October 26, 2020 1:48 PM  

I think they were hoping / pretending hyper specialisation of labour would bridge the income gap and a one world economy would lead to one world government......

Blogger modsquad October 26, 2020 1:49 PM  

They'll never talk about the private enterprise of central banking, how money is created, and where it goes when it comes "out of circulation."

Blogger Unknown October 26, 2020 1:59 PM  

"Reduce imports, increase GDP. The relationship is basic math."

I think I've spotted the flaw. Clearly practitioners of the aptly-dubbed "Dismal Science" cannot be expected to correctly apply basic mathematical principles and methods, eh?

Blogger Brett baker October 26, 2020 2:01 PM  

But reduced imports only help rubes in flyover country! Not Masters Of The Universe.

Blogger Glen Sprigg October 26, 2020 2:06 PM  

In my first year of college (four years ago already?!), I took both Micro and Macroeconomics courses. I got 100% in both of them and won a cash award for my efforts. Now I'm wondering if I got 100% in courses that taught 100% error.

Blogger Balkan Yankee October 26, 2020 2:08 PM  

Schadenkrugmanfreude

Blogger xevious2030 October 26, 2020 2:10 PM  

They’re too stupid to understand musical chairs.

Blogger Barbarossa October 26, 2020 2:14 PM  

Missed a crucial part? Or simply didn't care because it would only affect the deplorable hoi polloi of the industrial middle classes?

Also, will Krugman lose his cushy sinecure at the NYT? Will his Nobel Prize be recalled? Will the textbook publishers discontinue his numerous contracts? Somehow I think not.

I must admit when I was much younger I read about the execution of the great chemist Lavoisier and thought, "Come now. That's a bit excessive." Now I get it. And Krugman isn't 1/1000th the intellect that Lavoisier was.

Blogger Karen took the Kids October 26, 2020 2:19 PM  

Another 'early life' specialist worrying he'll be forced to flee to his homeland.

Blogger pyrrhus October 26, 2020 2:19 PM  

But Krugman and all the other Fed-captured economists will go on preaching globalism, and the egalitarian Homo Economus, as if nothing had happened.....

Blogger Hylean October 26, 2020 2:31 PM  

Economists to keynes: I like your funny words magic money man

Blogger machinephilosophy.com October 26, 2020 2:40 PM  

Immigration is about the rich and powerful keeping human trafficking lanes open, especially for child sex trafficking and cheap rent boys. A flashpoint seems to be nearing.

What these monsters don't realize is that organized encrypted networks, through alternate para-internet means, are the future of (real, not chattering) warfare against these evils. Gates' and others' documented vacillating between Pollyannish dream-wish scientism and dystopian alarmism about a.i., while tell-tale in itself, is just one of their many worries about the future. The stones (semiconductors) are already crying out.

Blogger Dirtnapninja October 26, 2020 2:44 PM  

What I hate about these people is that they never pay for their mistakes.

Blogger nono October 26, 2020 2:59 PM  

"Paul Krugman has never suffered fools gladly." Then that would mean Paul Krugman never looks in a mirror.

Blogger Gallant October 26, 2020 3:19 PM  

I always saw Krugman's words more in the vein of deception (saying what he needed to say to advance his core ideological beliefs) more than one of competence or errors.

To the point where any admission like this is just to rake back a bit of credibility and audience to hit with some identity politics.

I recall 15 years ago when someone forwarded me some article about SubPrime, my response was: "Are you trying to convey the points in the article, or merely the point that that Krugman himself is pushing them?" - I've always seen him in these terms.

Blogger map October 26, 2020 3:20 PM  

Yeah, it's like Milton Friedman admitting that getting off the gold standard was a bad idea.

http://polyconomics.com/memos/mm-030613.htm

The Rule of Thumb in economics is, if there is widespread agreement on something within economics that laymen can see is probably fraudulent, then that agreement exists to promote a Great Lie.

Free Trade
Immigration
Debt
The Random Walk

Blogger map October 26, 2020 3:27 PM  

The reality is, he did not underestimate anything. He knew what he was writing and speaking was a lie. It's like sociologists being surprised that divorce destroys families and hurts children.

The modern world is populated by massive governments that put their fingers on the economic scale all of the time, and they do so for political reasons. That's what "hyperglobalization" is, basically, mercantilism. It's what all global trade turns into.

Blogger McJibblits October 26, 2020 3:37 PM  

Shortsighted man from large city recommends economic plan that only benefits people living in large cities... temporarily.

Blogger Iskander Magnus October 26, 2020 3:47 PM  

Upon reading this blog entry I’ve just bought a copy of “The return of the Great Depression” scheduled to reach me in the next two weeks. Any more economics books for non specialists that might help spot the deceit of Official Narrative? Best if written by your good self, as the based Christianity presuppositions will be operative.

Blogger Jpc October 26, 2020 3:53 PM  

Joseph Stiglitz is the guy who understood that the globalization move had huge inherent issues.
But he got shoved aside.
His book Globalization and be it's discontents was and is worth a read.
A bit late now. The damage is done fatally I suppose to most western economies.

Blogger Canadian Warlord October 26, 2020 4:01 PM  

"Others would disagree. Part of the problem is that, back in the ’90s, when the post-Cold War consensus was just emerging, economists tended to take a simplistic either-or view of trade—either you were a free trader or a protectionist—and forced people to choose sides."
______________________
Where do we back-check the constant narrative flipping that is required to dodge responsibility? What exactly is, consensus among economists?

We only hear from economists who tow the current party line, we only hear from economists who are saying something someone wants us the hear. Yes yes yes, their opinions are all over the place. What does that mean, and why are we never able to navigate those opinions ourselves?

Why is the media involved at all?

Blogger DourCdn October 26, 2020 4:08 PM  

I got rid of my Krugman International Economics text book that was lugging around since the 90s in 2013.

Blogger Dole October 26, 2020 4:11 PM  

Ship Obama's peace prize to president Trump.

Ship Krugman's Nobel to Vox.

I wonder what made him finally admit his mistakes. This is exceptional.

Blogger Vlad Z. October 26, 2020 4:12 PM  

It's not fashionable to cite them, but both Pat Buchanan and Ross Perot were correct about the effects of free trade (NAFTA, specifically in Perot's case).

Buchanan's quixotic campaign to unseat George H.W. Bush as the GOP nominee in 1992 resulted in his upset victory in New Hampshire.

He spent much of the campaign touring the textile mills and shoe factories of New Hampshire, which were among the first industries to be "outsourced". A lot of the God Emperor's 2016 campaign harkens back to Buchanan's 1992 run, including his vocal disdain for the elites, and quiet sense of racial solidarity among supporters.

Buchanan's final "gift" to the Bush campaign was his amazing speech at the GOP convention. What was meant to unite the GOP was in fact a call to arms. Derisively referred to as the "Culture War Speech" by pundits, it was universally denounced in the same way, using the same language, by the same people who routinely denounce Trump speeches. "Divisive" "Racial Dog Whistles" - Leslie Stahl, Tapper, Blitzer and Todd.

In other words: it was damn good and pretty effective.

It was hung around Bush's neck and used to strangle his campaign. Bush and Perot split the right-wing vote, and Bill Clinton became President with only 43% of the vote. (Funny, leftists never complain about this or mention it as a reason to abolish the electoral college.)

Blogger CJ October 26, 2020 4:23 PM  

Another voice that should have been heeded was the late James Goldsmith. BTW in his anti-globalist book The Trap he included mass immigration as one of the dangers to western societies.

Still worth listening to his appearance with the now-disgraced Charlie Rose:

https://www.youtube.com/watch?reload=9&v=wwmOkaKh3-s

Blogger Mr.MantraMan October 26, 2020 4:30 PM  

Not easy being a white or Jewish "liberal" these days, the people most likely to respect and care about them are from the conservative faction, their political allies would give them the Robespierre in a heartbeat. Too bad for them.

Blogger Azimus October 26, 2020 4:31 PM  

Thats very big of him to admit he was wrong.

So when do we reverse his policies? When does he advocate for protecting our working class from slave labor? When is he arrested and his assets forfeit for being a phony, criminally-negligent, meddling, attention-hungry fraud?

He has broken this nation's back. In a few years the fiat will disappear. He, and people of his ilk, did (and are in the process of doing) more damage to this nation than Hitler or Tojo or Stalin or pick your villain could've possibly hoped for. His hubris cost more American lives than Holland Smith lost at Iwo Jima, and for even less reason. He can go to hell with his admissions - he's using it as free advertising to sell a book, the POS.

Blogger Paul Thompson October 26, 2020 4:33 PM  

Given the kind of creature he is, he couldn't see his reflection anyway.

Blogger JohnJ October 26, 2020 4:37 PM  

What would happen if you tried free trade, but no free movement of people?

Blogger cecilhenry October 26, 2020 4:55 PM  



The solution is perpetual, repeat, PERPETUAL punishment of anti-Whites is to get $trillions out of the estates or the living remainder of them.

Blogger Hieroglyph October 26, 2020 4:56 PM  

"Immigration is about the rich and powerful keeping human trafficking lanes open, especially for child sex trafficking and cheap rent boys. A flashpoint seems to be nearing."

Had I read this a few years ago, I would have scoffed. However, given immigration is thoroughly destroying Western countries, I have to wonder exactly that the point of it is. The argument about aging population always appears slightly ridiculous, as presumably migrants also get old. I can only conclude that mass immigration is intended to be destructive, and if it aids in people trafficking, bonus!

There are however, finally, mutterings here in Australia. And BLM has succeeded, in the US, in pissing off almost everyone, paving the way for a re-evaluation of the various gibs given to the black community. These mutterings of national self-preservation will, of course, be managed in the usual way, with lies and slander, and repression - but it's a start.

The next Herculean task for GE is dealing with the NGO's. Ignore the wailing of white women, it has to be done.


Blogger Jpc October 26, 2020 4:57 PM  

The post industrial service economy.
Nope !
Hasn't played out too well!

Blogger Up from the pond October 26, 2020 5:16 PM  

Globalism stirred up a bit more "anti-Semitic" reaction than Paul and the rest of the sanhedrin anticipated. The election of Trump is their only regret. But they don't worry much, because they believe the algorithms and Jordan Peterson will put the ravaging monster of young white Christian men back in the kill box Any Day Now.

Paul hasn't changed his ideas about economics and debt because it was never about economics.

Fake Economics, Fake News, Fake Medicine...all brought to you by the People of the Lie.

Blogger eclecticme October 26, 2020 5:32 PM  

@25. Iskander MagnusOctober 26, 2020 3:47 PM
Upon reading this blog entry I’ve just bought a copy of “The return of the Great Depression” scheduled to reach me in the next two weeks. Any more economics books for non specialists that might help spot the deceit of Official Narrative?


Free Trade Doesn't Work by Ian Fletcher is good. I preferred the paper version. Books and videos by Michael Hudson turned my mind inside out. Kindle versions are fine. Maybe read The Monster then read Killing the Host. He has many videos. Many of the places that give him a platform are far left flakes. Get past that. Forgive them their debts is another book that is good.

Here is a short Michael Hudson video. He has many videos. He goes into details when he is given the time. He is 80 and the godson of Leon Trotsky. I grew up on Milton Friedman.
https://youtu.be/JZQqrxHGcoQ

Michael Hudson says that classical economist used to consider financial loans (usury) as extractive and external to the real economy. Now finance is included in the GDP.
Also
https://youtu.be/SazlVfAu-DI

Blogger Joan T. October 26, 2020 5:32 PM  

Vox, Where can we learn more about your labor mobility argument against free trade?

Blogger SweetieSquad37 October 26, 2020 5:42 PM  

Anyone have a link to the post where Vox discusses his labor mobility argument? or is it in his book Return of the Great Depression?
I vaguely remember it but I'd like a better understanding of it.

Blogger eclecticme October 26, 2020 5:44 PM  

@25. Iskander Magnus
One more Michael Hudson video
https://youtu.be/hH9pzzIIEj4
Michael Hudson - Life and Thought 20180507

My objection to the globalization did not require any understanding of economics. Some people in the US are harmed by free trade and some are helped. If Wall street is helped more than manufacturing workers are harmed then the economists consider that a win for "America." WTF?

Blogger Michael October 26, 2020 6:08 PM  

Labor-mobility argument? Sounds intriguing. Where can I find your writings on this topic?

Blogger Snidely Whiplash October 26, 2020 6:16 PM  

Michael wrote:Labor-mobility argument? Sounds intriguing. Where can I find your writings on this topic?
Left-hand column, under "Topics" you will see a link for "free Trade".
or you could go to google and search for "labor mobility" site:voxday.blogspot.com

Blogger Snidely Whiplash October 26, 2020 6:19 PM  

Here is a very succinct summary:
The Labor Mobility Problem"

Blogger artensoll October 26, 2020 6:19 PM  

@41 Vox's debate with Bob Murphy on Tom Woods YT channel:

https://youtu.be/BMi-c9_4v-c

Blogger Bezzle October 26, 2020 6:22 PM  

The first and only real job of an economist in the modern cabal system is to justify pervasive and perpetual government thievery and favoritism; it is the ticket they take to be awarded the least of accolades. Whether they are "wrong" is a triviality before that they are unethical.

Blogger Doktor Jeep October 26, 2020 6:28 PM  

When I think about how they pushed "service economy" in the 1990s... criminals.

Blogger Glaivester October 26, 2020 6:29 PM  

@21:
I always saw Krugman's words more in the vein of deception (saying what he needed to say to advance his core ideological beliefs) more than one of competence or errors.

Ding ding ding.

@14: Will his Nobel Prize be recalled?

He doesn't have a Nobel Prize. He has a Swedish Central Bank Prize (a fake Nobel Prize). The fact that it is a Central Bank Prize should tell you all you need to know.

Blogger artensoll October 26, 2020 6:37 PM  

@11 Glen Sprigg "Now I'm wondering if I got 100% in courses that taught 100% error."

All one really needs to know is "Ricardo, retardo”.

Blogger Snidely Whiplash October 26, 2020 6:40 PM  

Oh, I forgot about this:
The booklet is a debate Vox had with a mainline economist on Free trade

Blogger artensoll October 26, 2020 6:45 PM  

"The booklet is a debate Vox had with a mainline economist on Free trade"

This would be a good choice for Patreon book club.

Blogger Tino October 26, 2020 7:04 PM  

I will borrow a great line from Ayn Rand.

Errors of this magnitude are never innocent.

Blogger Scuzzaman October 26, 2020 7:07 PM  

See http://www.shadowstats.com/alternate_data for some interesting contrast between official economic statistics and reality.

Blogger Unknown October 26, 2020 7:10 PM  

"What would happen if you tried free trade, but no free movement of people?"


Then our corporations will make everything in low-wage countries, where they don't have to follow OSHA safety standards or overtime rules, provide health care benefits etc.

Immigration brings the cheap labor HERE, to undercut American wages. Free trade sends the jobs over THERE, to undercut American wages. Two sides of the same coin. Both must end.

Blogger eclecticme October 26, 2020 7:59 PM  

@11 Glen Sprigg "Now I'm wondering if I got 100% in courses that taught 100% error."

Funny you should mention that.I was just re watching an entertaining Michael Hudson video.
https://youtu.be/hH9pzzIIEj4?t=596
At 10 min to 13 min he describes how he worked at a commercial bank in NYC while getting his Masters in economics at NYU. He got a C+ in money and banking from a guy who never worked in a bank because Michael knew nothing about banking.
14 min his job offer from the CIA.
From 15 min to 18 min he describes how he wrote his dissertation and his orals. He nailed everything except for failing his orals on money and banking for the same reason. He had to memorize an imaginary textbook world world of money and banking and regurgitate it to pass his orals. Quite entertaining.

I only took one year of economics and never believed the macro BS so I have less to unlearn. If I had an entire degree I might need a lobotomy.

Blogger VD October 26, 2020 8:01 PM  

I only got a B in Macroeconomics. Of course, I didn't even bother buying the textbook or going to class. That impressed the professor enough to offer me an independent study the next two semesters.

Blogger furor kek tonicus ( you can't untuck the Cuck, but the real question is "Why were you trying to touch a Cuck like that?" ) October 26, 2020 8:07 PM  

11. Glen Sprigg October 26, 2020 2:06 PM
Now I'm wondering if I got 100% in courses that taught 100% error.



the GDP formula tells you that:

a - growth or loss in the economy is *whatever the Federal government decides to spend*. as FedGov is the single largest economic actor, and as the practical limit to FedGov spending has not yet been revealed, FedGov can swamp all other GDP factors by fiat. ( yes, that pun is intentional ) thus, current formula and theory states that all Recessions and Bull markets are creations of the State and that Wealth does not exist independent of the State.

b - sustained trade deficits ( US has run deficits since the mid-80s ) subtract directly from GDP growth, requiring growth in FedGov spending exceeding the Balance of Trade offset in order to show paper growth

c - Economists / the GDP formula are entirely incapable of accounting for Wealth / Productivity Growth which was not 'created' via exchange of Federal Reserve Notes. ie - a farmer takes the tractor ( which he already owns ) and ditches and drains 50 acres which had previously been swamp and plants it with nut trees such as Black Walnut and Chestnut. BECAUSE the farmer did NOT pay a grading / drain tile company to do the work, the only "economic activity" that the Economist sees is a slight increase in fuel usage for the year and perhaps some higher service and parts bills. the Economist will remain wholly ignorant of the lumber harvest which will be available some +50 years hence.

d - modern economic theory tells you that Debt has no significant impact on the overall economy
...
yet the Ancients who invented all forms of lending at interest considered it a primary tool of enslavement of the Debtor.

e - modern economic theory also pretends that Friction and Entropy ( 2nd Thermo ) do not exist, which is how the GDP formula can weight the economic value of a dollar spent by the FedGov to be every bit as valuable to the Economy as a dollar spent by actual productive economic actors like farmers or businessmen.
...
even when the FedGov had to borrow trillions in order to spend it / give to ghetto rats who won't do anything but destroy their publicly provided housing, like Cabrini Green.

f - you will notice that the Federal Reserve IS NOT actually a Federal Agency. further, you will notice that the FedRes sets annual goals for both GDP growth and Inflation ( Deflation has never occurred since the FedRes was instituted ).

questions:
why does a nominally Capitalist country permit central planning of it's economic policy ... controlled by private entities?
how much does GDP "growth" exceed Inflation, if at all? because the GDP needs to increase at least as fast as the population just for everyone to have a chance to *maintain* their standard of living

Blogger furor kek tonicus ( you can't untuck the Cuck, but the real question is "Why were you trying to touch a Cuck like that?" ) October 26, 2020 8:21 PM  

14. Barbarossa October 26, 2020 2:14 PM
Missed a crucial part?


"missed" a crucial part that Marx pointed out +150 years ago in The Communist Manifesto.

Marx calls for International Trade as a tool to impoverish the Middle Class, thus crushing their "False Bourgeoisie Consciousness" and driving the creation of the genocidal Proletariat.


35. JohnJ October 26, 2020 4:37 PM
What would happen if you tried free trade, but no free movement of people?


the Constitution designs the Federal Government to derive it's funding from Duties and Fees on international trade. why do you hate America?


Blogger SonyAD October 26, 2020 9:22 PM  

If he's never suffered fools lightly, how does he still suffer himself even now?

Blogger SonyAD October 26, 2020 9:31 PM  

Most former communist countries (including my own Romania) and peripheral European countries have had many decades long negative trade balances. Many or most of them for as long as the very early 1990s. All countries with perpetual negative trade balances have this sustained and perpetuated using ex nihilo money issuance through new private and public debt. At the cost of deindustrialization, ballooning real estate estate prices, high unemployment, low wages, extreme wealth inequality, population exodus, plummeting birth rates and poverty for most of those left behind. Probably all by design.

I hope to live to see the day when the last banker has been hung to death by the entrails of the last career politician.

Blogger Paulito October 26, 2020 9:38 PM  

I'd be a lot more shocked if Krugman ever truthfully admitted to being right about something.

Blogger Crunchy Cachalot October 26, 2020 11:50 PM  

adapted from a forthcoming book on inequality,

Krugman will never stop being wrong about everything, so this book should be a laugh riot.

Blogger Azure Amaranthine October 27, 2020 1:07 AM  

"One has to wonder if Krugman and other economists genuinely make mistakes like that"

Not genuinely, any more than atheists are genuine. It comes of worshiping the wrong god, in this case wearing a mirage of earthly paradise.

"What would happen if you tried free trade, but no free movement of people?"

Whatever was hindering the movement of people would be called "antithetical to our ideals of free trade" and bulldozed over.

Blogger Bezzle October 27, 2020 3:18 AM  

@59. furor kek tonicus ( my feelings don't care about your facts ) October 26, 2020 8:07 PM
a - growth or loss in the economy is *whatever the Federal government decides to spend*. as FedGov is the single largest economic actor...

Exactly. GDP exists as a statistical measure to justify and glorify codified institutional thievery and redistribution.

Blogger Doom October 27, 2020 4:51 AM  

Yes, on that, Trump's plan has been self-fulfilling. It's been a beautiful thing to watch. After not understanding the argument against, except either stupidity or Chinese owned talking heads, I stopped listening to such "news".

I am surprised he hasn't done more? He has been playing relatively nicely, to be honest. A few areas, sure. But if he wanted to crush... ah... that's why. War. China, if they lost it all, or were about to, might well just plunge right into war.

Okay... I see why he is playing it... at a moderate pace. Still, watching him work is a wonderful thing. It isn't politics, it's business. It's what he is good at. Most politicians should be shot, after what he has showed us about most of them.

Blogger SonyAD October 27, 2020 7:09 AM  

Bezzle wrote:@59. furor kek tonicus ( my feelings don't care about your facts ) October 26, 2020 8:07 PM

a - growth or loss in the economy is *whatever the Federal government decides to spend*. as FedGov is the single largest economic actor...

Exactly. GDP exists as a statistical measure to justify and glorify codified institutional thievery and redistribution.


I agree. Inflation contributes to GDP and they NEVER EVER fully or truly account for true actual inflation. Lest it would show economies actually contracting in reality. Other indicators, such as how much electrical power is used per member of the population per year, how much gasoline or diesel is used, how much food of various types and qualities is produced and consumed, how many new houses or apartments are built etc. are far better indications of how the economy is doing. But even though aren't sufficient, in and of themselves, because you don't know whether that production and consumption is sustainable or was just funded through private or public debt expansion.

Debt, in and of itself, or expanding the money supply through ex nihilo money creation with the obligation to pay it back eventually or gradually would not necessarily be bad, were that new debt money issued by the government, at 0% interest, directly to the population or locally based entrepreneurs without passports or dual citizenship or even residency permits in other countries. And, preferably, who were born in the country and have lineage in the country going back a few generations.

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