Tuesday, July 17, 2018

We already got it

Republican Rep. Urges America: "Do Not Repeat The Nightmare Of Socialism"


Your party runs a deficit close to 5% of real NGDP.  Thus, about 5% of NGDP growth comes from government debt, meaning government should generate about 2.5% growth with that spending.  If this is equilibrium, then the private sector is generating about a half point of growth.  You will never see the deficit drop, not enough taxes with that weak growth.

There is no solution. The guv will continue to increase its mispricings via inflation adjustments and price fixings.  We walk farther away from any known equilibrium, unchartered territory.

My slumlording business, for example. Government owns the shared housing business, halfway houses.  Why compete?  Except for one thing, government has to provide housing because the current economy is squeezing the low end populace, tenants,  by channeling all the debt through government. But, like I say, government rates are three times the slumlord rates. They need the taxes, don't have them.

No comments: