How Government Spending Can Make the Debt Burden Look Smaller than It Really Is
Governments can increase GDP numbers simply by spending more, and this can reduce debt as a percentage of GDP. But what if we calculate GDP using only private spending?
Governments can increase GDP numbers simply by spending more, and this can reduce debt as a percentage of GDP. But what if we calculate GDP using only private spending?
Although many claim "nobody saw this coming," some entrepreneurs planned ahead and also have found ways to cater to customers under new conditions.
In a world of scarcity, there are no solutions, only tradeoffs.
At some point in early April, the official narrative switched form "don't let hospitals get overwhelmed" to "you're locked down for years until there's a vaccine."
Doing things for money does not justify moral condemnation, unless using money to support your family, live up to the agreements you have made, and to try not to burden others justifies moral condemnation.
More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.
The current crisis for airlines is even worse than it was after 9/11.
Police have long shown a preference for enforcing petty laws against petty offenders. After all, real violent criminals fight back. The current COVID-19-induced crackdown on business owners has made things even worse.
France faces a future of spiraling debt and declining economic growth. So Emmanuel Macron has now embraced economic nationalism as a way out. It's not likely to work.
When it comes to understanding business cycles, Austrian school scholars stand on firm ground while critic John Tamny is all at sea.