"It is rarely acknowledged by politicians that the main reason for the constant drive for GDP growth is to pay interest to the banking system." I had no idea. 🤯
Me neither … that’s why it thought interesting to share. We are all well trapped in this montage. Same thing with all economic theories, which are presented to us as "facts" and which we forget are precisely theories ! :-<
Very informative piece, but the reality is even somewhat worse than is portrayed. GDP measures spending, including government spending. It does not measure economic growth or growth in productivity. It only measures spending.
So if the government borrows more and spends more and hands out more Cantillon money to its leftist cronies (as indeed it does, as the USAID investigation has shown) then that government borrowing and spending and handouts are measured as GDP growth. In fact, if the government borrows and spends more, but no productivity growth happens at all, the GDP goes up. GDP is just another government lie.
"It is rarely acknowledged by politicians that the main reason for the constant drive for GDP growth is to pay interest to the banking system." I had no idea. 🤯
Me neither … that’s why it thought interesting to share. We are all well trapped in this montage. Same thing with all economic theories, which are presented to us as "facts" and which we forget are precisely theories ! :-<
So true. I appreciate the thoughtfully curated perspectives you share, Joelle. 🙏🏼🤩
Very informative piece, but the reality is even somewhat worse than is portrayed. GDP measures spending, including government spending. It does not measure economic growth or growth in productivity. It only measures spending.
So if the government borrows more and spends more and hands out more Cantillon money to its leftist cronies (as indeed it does, as the USAID investigation has shown) then that government borrowing and spending and handouts are measured as GDP growth. In fact, if the government borrows and spends more, but no productivity growth happens at all, the GDP goes up. GDP is just another government lie.
https://michael796.substack.com/p/9-the-gdp-untruth
Thank you for this very relevant precision!