The New Protectionists

opinionjournal ^ | March 10, 2006 | WSJ

[Paul Ross]

Does their purchase of Treasury debt allow higher government spending?

A'hem. Not a good thing.

Whose side are you arguing for again?

[Toddsterpatriot]

A'hem. Not a good thing.

Did I say it was? We're talking about GDP and how it's calculated. Math is involved. Over your head.

[Paul Ross]

Did I say it was?

From the context, you do imply that. English. Must be over your head.

[Toddsterpatriot]

English. Must be over your head.

So says the guy who doesn't understand the difference between foreign currency and US Treasuries.

[LowCountryJoe]

The capital flow issue? What issue? you contradicted your own source.

Are you deliberately lying or are you so dense that you're not aware of that which you speak-th? Mankiw's text was the source of my understanding of the NX = NCO ( and, by logical extension - but only to some, I gather, the net imports = net capital inflow) identity(ies).

[unseen]

GDP = Consumption + Domestic Investment + Governmental Spending + Net Exports

well that's one way to calc GDP. However you can calc GDP this way too: GDP=Consumer spending(C)+Industrial spending(I)+governmental spending(G)+net exports so taking this view. The outsourcing of jobs decreases C because less jobs means less consumer spending by those who lose their jobs which usually takes years to show up due to additional sources of income that consumers can tap(i.e unemployment benefits, home lines of credit, family, other government benefits, etc). Outsourcing also decreases I because the companies are spending the money in China and India building infrastructure instead of within this country. It does increase G because governments have to spend more on food stamps, welfare benefits, unemployment costs, reeducation costs etc. While at the same time decreasing the tax base therefore we see the increase in federal deficits. Outsourcing also decreases net exports because we now have to import what we use to make. So in what way is outsourcing good. The only way outsourcing is good is to company profits which after buying off Congress with 100 million tax breaks most of those profits do not find their way into the general American population because outsourcing also depresses wages her at home. And outsourcing can be tied DIRECTLY to Free trade because if it was not for the elimination of tariffs companies would not have a profit motive to outsource their jobs.

[Toddsterpatriot]

GDP=Consumer spending(C)+Industrial spending(I)+governmental spending(G)+net exports

Where is investment in your formula?

[Paul Ross]

You contradict Mankiw's explicit axiomatic conclusions, and his charts. So it is you who are apparently "lying".

Why do you think I found your finally, at long last producing one source... to be so rewarding...but not to you. It exposes your hyperventilating contentions for what they are to the opponents of your twaddle...gross misunderstasnding and misconstrual on your part.

No wonder you seldom if ever try to produce support for your poppycock. Your own sources contradict you!

[LowCountryJoe]

Okay, then...answering those two "true/false" question should be a piece of cake. I'm looking forward to it - you gathering the necessary spine, that is.

[LowCountryJoe]

pinging once again because you managed to dodge the majority of it the first time around: big surprise there.