Cutting spending in a fragile economy is moronic. It comes right off the GDP and National Income. We need a tax increase on higher incomes which are only being invested and have only a second order effect (investment gains) on economic growth. Instead of borrowing it and paying interest, we can just tax it, pay no interest, and provide a first order effect on economic growth. Btw, this artificial growth we keep registering is a result of using GDP instead of National Income. If I sell you a piece of gum for a trillion dollars and you sell it back to me for a trillion, that is 2 trillion GDP but 0 National Income.
Posted on: Sun, 06 Oct 2013 00:47:26 +0000