Failure Of The Education Of American Citizens

Here is an obvious failure of the education of American Citizens. When Government Spending goes DOWN, which IMHO is GOOD, GDP Goes Down. That’s how it works. GDP is Gross Domestic Product. If you are familiar with retail operations you will understand the difference between NET and GROSS. To get the Gross figure Negative components are INVERTED and added together with Positive Components. The Negative components are STILL NEGATIVE; that doesn’t change.
When the Negative portion goes MORE NEGATIVE, (Government Spending) The GDP goes UP!
When the Negative portion Goes in a POSITIVE direction, (Government Spending GOES DOWN), The GDP GOES DOWN!
If Growth of GDP is NOT from private sector activities or investment or good Trade activity the GROWTH of GDP is NOT GOOD. It is from Growing Government spending.
If reduced GDP is from reduced private sector activities or investment or bad Trade activity the Reduction of GDP is NOT GOOD. This is from reduced or impaired free market activities.

It would make more sense to evaluate our economy by NET Domestic Product using only the Positive components as they cycle up and down. Government Spending should be treated separately. At some level Government Spending is of course necessary as are taxes at some level. The responsible way to account for Government spending in this fashion would be much more Transparent, (Wonderful word. Let’s see some Transparency.

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