Comment 33227

By JonC (registered) | Posted September 04, 2009 at 16:01:33

I love how you take things slow for me and the first point you make I already agreed with. You are a genius. Let me take this slow. Loaning money doesn't count towards the GDP, but spending it does. It doesn't matter if it is spent well. It doesn't matter if I go bankrupt or go bananas. If I spend money, the GDP goes up. So when the government borrows trillions of dollars and then spends it. There are two economic events that occur

1) Money is borrowed 2) Money is spent

1) has absolutely no effect on GDP, 2) counts 100% towards GDP. So borrowing money artificially inflates the value that you use to make your whole basis of argument in the first place. And to remind you of your argument, since you most assuredly are spinning your wheels talking about other random tangents....

"Oil production has been relatively flat since 2004, yet World GDP keeps growing... While you may be right about oil production, the evidence does not support the notion that this will affect human capacity for using resources more productively."

The fact is that an insane amount of money is being borrowed and spent and this is the reason that GDP has marched onwards and upwards. Your rants about government is bad, blah blah blah do nothing to bolster your argument that economic success is unrelated to resource scarcity.

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