Comment 33255

By A Smith (anonymous) | Posted September 05, 2009 at 15:50:46

Grassroots >> Would not, they, the island have to build infrastruture to hold the beer and food, like warehouses, transportation routes? How about building markets, to sell the food and beer?

That may have been a good idea, but that's not what they did, all they did was import food and beer. As for markets, this island is full of lefties, therefore things are free.

>> What if there was no more resources such as oil, so planes/boats would not be landing to visit the resort? Or what if their was not enough fish in the seas?

What if new technology doubled oil reserves? What if fisherman discovered ways to increase fish yields?

JonC >> If the GDP is the same whether the money is borrowed or from savings. Which is the whole point I was making. Borrowing increases GDP.

This definition of GDP is taken from the Whitehouse.gov website...

www.whitehouse.gov/omb/rewrite/budget/fy2003/bud35.html

Gross Domestic Product (GDP)

GDP is the standard measure of the size of the economy. It is the total production of goods and services within the United States.

Notice how the word PRODUCTION is the unit being measured. It's not how much a society consumes, but how much a society produces. That's why imports (goods produced OUTSIDE the United States) don't add to GDP, but subtract from GDP. If a society sits on it's ass all day and lets other people do the work, how can you say they produced anything?

In the case of the second island population, what exactly did they produce?

Finally, do actually you believe that issuing debt can magically increase the amount of food, beer, roads, buildings, software, without having anybody go to work and come up with new ideas? If everybody in the world stayed at home for a month, how could you buy anything?

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