Quote:
Originally Posted by Americano
What GDP gains? Without government injections of capital derived from debt, including spending deficits, SS 'surplus' collections and supplementary funding for Iraq and their economic flow through multipliers, GDP would be stagnant at best and in reality showing a decline.
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I have always held the view that institutional design plays a larger role in long-term trends regarding real GDP and other economic indicators. If anything high inflation policies would tend to lower long run GDP as resources would be devoted to reducing shoeleather costs.