Monday, November 21, 2011

The Austerity Argument: Real GDP Growth vs. False GDP Growth

Of the many problems with the "austerity argument" regarding lower GDP growth are:

(a) the argument regarding "austerity" leading to lower GDP growth relies on the implicit assumption that the previous false GDP growth number, created through endless government deficit spending, was in fact a real growth number, yet in fact the GDP growth number was false,

(b) the false GDP number is then used as a base measurement,

(d) austerity merely returns one to a real GDP growth number and/or a real GDP growth number base,

(e) the movement from false to real is depicted as "lower growth" when in fact it is a movement from false growth to real growth.

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