Posted on 10/29/2024 12:29:28 PM PDT by marcusmaximus
That’s a zeeper thing. A bunch of them do that and for some reason, they seem to think they’re being clever.
Russians Resort to Stealing Butter Amid Shortages
https://www.newsweek.com/russians-resort-stealing-butter-amid-shortages-1976575
“One production company cited 46 percent cumulative inflation for eight months of 2024 compared to the same period in 2023, partly due to aggressive inflation costs of raw cream. Prices for dairy items, including butter, have soared this year, per the report. The price of the butter itself has soared by 55 percent.
Import restrictions on some dairy products and the ruble’s steep depreciation have only intensified the squeeze on household goods like butter.”
Not capitalism?
GDP = C + G + I + (exports - imports) we see that government spending (which generates debt after taxes) is the source of that 14 —> 29T. The debt over that time frame 10 to 36 Trillion. The GDP came from debt. We borrowed our way to GDP, which of course, pretty much everything gets divided by to quote XX to GDP ratio.
Government spending is not the reason GDP went from $14 T to $29 trillion.
You could say that government spending went from $2.7 trillion in 2007 to $7 trillion in 2024, so the increase caused $4.3 trillion of the $15 trillion growth, but not all of it.
Well, it’s good that you followed those numbers, but it is cumulative and you missed that. You’re quoting a year’s spending increase. Annual spending went from 2.7 to 7, as you noted, but that’s per year.
2.7 year 1, then maybe 3 the next year, then 3.5, then 4 . . . out to 7. Those are singular. By the year. You must add them up (minus taxes of course — that is, the cumulative deficits) . . . to create debt that is an injection into the system.
Perhaps the most damning number about GDP (capitalism) is the accumulated debt exceeds current GDP. Capitalism was friction. All of the debt, injected and spent, did not appear in GDP. Debt to GDP is now over 100%.
$2.7 trillion in government spending in 2007 leaves non-government GDP in 2007 at about $11.7 trillion.
$7 trillion in government spending in 2024 leaves non-government GDP in 2024 at about $22 trillion.
Pretty good rebuttal. I think you have a point about accumulation.
I would counter with financialization of that deficit outflow each year, serving as collateral for debt that generates interest (meaning non govt debt in this instance), but you overall have a point that waste is waste only in the year wasted. The interest would not be the total amount spent.
As for the I in the equation, that is usually said to reduce by taxes and they can be evaded — leading even more of gov’t spending to be financialized to generate interest.
Frankly, not sure where interest appears in the GDP equation. Probably . . . C?
But don’t want to dance around this. You do have a point about wastage is only waste in the year wasted.
Not sure what you're talking about here. Foreigners using trade deficit dollars to buy US government debt?
Government interest payments are in G and consumer interest payments would be in C.
As for the I in the equation, that is usually said to reduce by taxes and they can be evaded
I is corporate investment.
Yes, it is investment, and reduced by taxes. Or so I was taught.
It is clearly tricky:
Technically, you can say, investment comes before taxes. Part of the investment in equipment, software, etc., can be deducted in the first year. 100% for a period after the Trump tax cuts.
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