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Tuesday, April 14, 2009

Comments

cribrange

Yelnick,

You state 'This means every new $1 borrowed reduces GDP'.

However the chart illustrates currently that for every increase in debt by one dollar, the GDP increases by roughly 20 cents. Implying that GDP continues to rise, however at a reduced rate.

What am I missing?

Cribrange

yelnick

Cibrange - we haven't hit the point of no return yet. Trending the chart, it points to 2015 when the marginal productivity goes negative.

cribrange

Ah ok, fair enough. Thanks.

aperiani coop

just because there is 'a trend' doesnt mean we have to stay on it....! we could drop like in 1985 to 1986 and go below zero long before the 'trend' shows in 2015........also how does the calculation of GDP releate to massive credit creation...i.e. does that credit get counted towards 'product' because of our crazy accounting rules....?

Kaleberg

It looks like the big change was back in the 1980s when we went into debt to pay for a tax cut instead of boondoggles for the middle class and poor. Get rid of that silly diagonal line and it almost leaps out of the chart. It matters what you borrow for.

Term papers

This chart should give me pause about stimulating the US economy with more debt. Your Article is very well written cant wait to read more.

Kamlesh

Cause they have to worry about 300 Million people first and what their needs are first. The Government has put mutplile bills into law giving industries time to pass new government regulations in the next few years. The EPA has to overlook thousands of companies to ensure they are compliant.With that said its impossible to completely overhaul all the infrastructure in the United States to make them "greener". That would take trillions of dollars, and we don't even neccessarily have the technology to get there. So there are a number of factors which contribute to it

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