Where is the US Economy?

Discussion in 'Politics and Society' started by Dogbrain, Jul 31, 2010.

  1. Dogbrain

    Dogbrain New Member

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    Government spending per GDP G/GDP is an excellent measure of long-term prosperity, since the ratio is essentially the reverse of the stability of a country's economy whenever a government has the power to print money at will. The higher G/GDP, the more government is spending to prop things up.


    Historical economists hate taking their charts back more than a few years, because it makes it harder for either side to lie. The highest ever G/GDP was during WWII, when it reached 80% of GDP. I consider WWII to be an extremely risky and unstable period. This dropped under Truman to a low of about 23% but then he shot it back up to 36%. It peaked under Eisenhower at 37% and was brought down to 30-33% under him. G/GDP then had a stable period until Nixon was elected. G/GDP then dropped to 24% during his administration. There was a brief bump and then a gradual slide to 23% under Carter, where it hovered between 23-24% up through George H. Bush. Under Clinton, G/GDP only declined, reaching 18%, the lowest G/GDP since 1930. It has fluctuated up and down between 18-20% since 2001 to the present quarter. Right now, even with the recent glitches we have had, our economy has been remarkably stable compared to previous decades.

    The real problem is when the elite use their access to power to concentrate that economy. No government can solve this problem, since the greater power a government has, the more concentrated economies become.
     

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