Back out the “growth” from borrowed money since the 2008 financial crisis and the US has had negative actual growth. This is one of best recent articles written on economics. From Baker and Co. Advisory Group:
- The U.S. economy is not as solid as it appears.
- Statistical anomalies hide profound weakness.
- I will examine actual GDP and actual employment.
- Warning: not for the faint of heart.
Do you consider debt as income? Before you answer that, let’s perform a thought experiment. Imagine that you had taken a long cruise last fall and charged $10,000 to an American Express card. When you did your taxes this year, would have told the IRS that you had $10,000 income from American Express? Of course you wouldn’t. Suppose a major oil company issues $800 million worth of bonds to develop a new old field. Would the company report that as income to the stockholders or the IRS? Of course they wouldn’t. I am sure those sound like silly questions as the answer is a self evident “NO!” We do not consider borrowed money as income. It is a liability that must be paid back. Then why do we count Federal Government debt when measuring national income? I will leave speculation as to the “why” to the readers and focus on the fact that we do count new Treasury Debt as income.
GDP= PI + BT + GS
To continue reading: We Are Already In Depression (If Borrowing Money Is Not Income)