All Posts Tagged With: "GDP"

Massive Regulation Hurts Small Business

Joshua B. Lantz, True CapitalismJosh Lantz joins us today as a new writer.  He also writes for True Capitalism. – Ed.

 

A study done by the Small Business Administration (SBA) said that in 2010 the annual cost of Federal regulations was $1.75 trillion.[1] Our annual GDP is over $15 trillion, meaning the cost of these regulations amounts to about 11.5% of GDP.[2] That’s a lot of money. Think of the impact on our struggling economy if we were able to cut those costs in half.

Why do regulations have a cost?

When government creates a rule (regulation), they often have to hire more public sector workers to enforce it. This expands government and pulls more people out of the private sector where goods and services are produced.…


Is The Middle A Place To Deal With Debt?

As of this writing, debate continues in the US Senate on the compromise Debt Ceiling bill, but one bit of information from the House vote presents an interesting view on the state of the Moderate position: all 5 of Iowa’s congressmen voted against the bill, even though we have 3 Democrats and 2 Republicans representing us.  (Update: Yup, the Senate approved it and Obama signed it… long day already!)

The reasons for voting “No” are drawn clearly along party lines.  The Democrats from Iowa (Braley, Loebsack and Boswell) all stated that “shared sacrifice” was lacking from the bill, which is code for “we want to soak the rich”.  King and Latham, the Republicans, were focused on fiscal responsibility and a balanced budget.

Saying that …


There Was No Recovery

“Double Dip.” By now you have probably seen this term somewhere. It appears that the economic recovery is stalling in what is supposedly its second year, and now the economy is poised for the dreaded “Double Dip.”

It is a lie. There was no recovery in the first place. The alleged “recovery” existed only on paper, and only with a great deal of mathematical trickery.

A recession is defined as two consecutive quarters of economic contraction, measured by the change in the gross domestic product, and the GDP is an illusion.

We calculate our GDP like this: Investment + Consumer Spending + Government Spending + Net Exports. If the federal government spends $1 billion on an airport in Pennsylvania that nobody uses, that is calculated …


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