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GDP doesn't measure national wealth.  It measures the nation's annual income.  National wealth would be equal to national assets minus national liabilities.  America's GDP should be roughly $13t by the end of the year, but its wealth is about $60t.  That's why I maintain that America's national debt, while too high for my taste as someone who admittedly a bit militant about balanced budgets, is not incredibly high.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Wed Jul 12th, 2006 at 08:25:28 PM EST
[ Parent ]
Quite right. That is the defintion of GDP.

To clarify, in that paragraph I was responding to this statement by technopolitan:

Put more bluntly and focused on GDP: greater national wealth enables greater military power.

And I also made a rather convoluted reference to a previous discussion where I stated my answers to Migerus socratic questions as:

1. What does GDP measure?
Tax base.

2. Why does it need to grow?
To enable politicians to keep their promises, wheter in expanding services but not increasing taxes or lowering tax percentages while keeping services constant. Or both. Few run on a platform of increased taxes and lowered services. Or on a reality-based platform where you need to pay for what you eat. Fiscal conservative is just a oppostion position, when in power you need to keep promises.

3. Does the need for GDP growth outweigh any other policy goal?
Policy is set by politicians right? Then - almost always - yes.



A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
by A swedish kind of death on Wed Jul 12th, 2006 at 09:31:03 PM EST
[ Parent ]
Ha!  Well in answering Miguel's questions, although, in fairness, Reagan did run on a platform of lowering taxes and spending.  I think he technically met that promise, in real terms, but he also ran enormous deficits, obviously, because of his tax cuts and the recession.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Thu Jul 13th, 2006 at 01:24:07 AM EST
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