Dr.Who
Well-Known Member
I learned a bit more about two numbers today.
GDP - Gross Domestic Product - the total output of all private industry in the country.
Net GDP - Net Gross Domestic Product per Person (the GDP less the amount of government spending at all levels divided by the current population.)
We would hope that the GDP would be larger each year since it measure how much we are producing and therefor how successful our economy is. We would also hope that the Net GDP would grow each year too since it is the private industry that creates wealth while government only moves money around.
There is a very interesting table at this site:
http://www.americanthinker.com/2011/06/obamas_america_prosperity_lost.html
The table shows, using government data, that as government spending goes up Net GDP goes down. Common sense that the more one subtracts from GDP the smaller it would get.
The table also shows that as Net GDP goes down (and government spending goes up) unemployment goes up too. That is common sense too.
But for me the shocker was that using the government data the percent of the economy controlled by government is expected to be 60.5% in 2030. Which of course leaves the Net GDP at only 12,450, down from a high of 26,445.
What do you suppose will happen if Net GDP is cut by more than half?
GDP - Gross Domestic Product - the total output of all private industry in the country.
Net GDP - Net Gross Domestic Product per Person (the GDP less the amount of government spending at all levels divided by the current population.)
We would hope that the GDP would be larger each year since it measure how much we are producing and therefor how successful our economy is. We would also hope that the Net GDP would grow each year too since it is the private industry that creates wealth while government only moves money around.
There is a very interesting table at this site:
http://www.americanthinker.com/2011/06/obamas_america_prosperity_lost.html
The table shows, using government data, that as government spending goes up Net GDP goes down. Common sense that the more one subtracts from GDP the smaller it would get.
The table also shows that as Net GDP goes down (and government spending goes up) unemployment goes up too. That is common sense too.
But for me the shocker was that using the government data the percent of the economy controlled by government is expected to be 60.5% in 2030. Which of course leaves the Net GDP at only 12,450, down from a high of 26,445.
What do you suppose will happen if Net GDP is cut by more than half?