Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: kjam22
Let's try again.

I'm alone. No wife, no family. I work a job $30,000 a year to make widgets. My quota is 100 widgets per day, and widgets sell for $100. Over the course of a year, I'll make 25,000 widgets (250 working days X 100), with a total retail price of $2,500,000.

My GDP is $2,500,000, my income is still only $30,000.

With an income of $30,000, NO ONE will loan me $2,500,000 to buy a house, but that's my personal GDP, so according to you, there's no problem with me borrowing that much.

The national debt should not be compared to GDP -- it should be compared to revenue only, which is a percentage of a percentage of GDP.

35 posted on 04/08/2016 11:52:02 AM PDT by cincinnati65
[ Post Reply | Private Reply | To 34 | View Replies ]


To: cincinnati65

No... but when you combine you and everybody else who earns a part a piece of that 2,500,000 a year... combined you’ll likely be able to borrow 4 times that.


36 posted on 04/08/2016 11:56:14 AM PDT by kjam22 (America need forgiveness from God..... even if Donald Trump doesn't)
[ Post Reply | Private Reply | To 35 | View Replies ]

To: cincinnati65
Let's try again. I'm alone. No wife, no family. I work a job $30,000 a year to make widgets. My quota is 100 widgets per day, and widgets sell for $100. Over the course of a year, I'll make 25,000 widgets (250 working days X 100), with a total retail price of $2,500,000. My GDP is $2,500,000, my income is still only $30,000. With an income of $30,000, NO ONE will loan me $2,500,000 to buy a house, but that's my personal GDP, so according to you, there's no problem with me borrowing that much.

Your description / analysis of the scenario is flawed.

YOUR "GNP" is NOT $2.5 million. Rather, it is only $30,000 per year. The "GNP" of your employer (I'm assuming, for the sake of simplicity, that you are his ONLY employee - i.e., that he gets to pocket all the rest of the fruits of your labor) is $2,470,000 per year.

That you made widgets worth millions is irrelevant to this discussion. The only thing that you actually sold was your labor - and that, apparently, had a market price of only $30,000 per year.

If you were smart, you'd open up your own factory and either find some other poor loser to work on the assembly line for you or do the work yourself and keep the "surplus value" (Marx) all to yourself.

What, you don't have the $10,000,000 it would cost to build the factory? Poor you!

Regards,

37 posted on 04/09/2016 12:11:32 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
[ Post Reply | Private Reply | To 35 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson