Rude: So if the economy tanks, it will not be Bush's fault?
That would be a meanigfull statement in this argument - if still incorrect - if the DmdNexus stated that "growth in economy is not Bush's merit".
But I do not see him saying anything about the "economy" growing. I see him stating that GDP went up due to monetary expansion and the government expenditures.
So you are not replying to anything he said.
GDP is calculated in such way that many items that would be counted as expense in private business are counted as income. GDP is supposed to comprise the value of final goods. Most government expenses cannot be rationally counted as final goods.
Government - Congress and Bush - did not reduce the amount of resources consumed by the government - and withdrawn from economy, they increased it. So that leaves fewer resources available for investment and consumption, even though it printed and gave away the money to buy resources in the form of tax cuts and credit expansion. Oh, yes - he actually caused americans to pay more for steel, lumber, agricultural products and other stuff necessary for business.
So if the economy does tank, it may well be Bush's fault - depending on his actions. It would certainly be Greenspan's fault causing unsustainable misallocation of capital by artificially lowering the interest rate.
At the same time consumer spending increased, indicating that people - americans - are nots aving and investing resources into the increase of production.
So if the production is increasing, it would mean there is a serious capital decumulation going on or someone abroad is investing the necessary capital.
It's not a great trick increasing production in a factory by neglecting the machinery - but a temporary one.
GDP is certainly growing - just look at the money supply. It is actually growing faster than GDP because a lot of money gets siphoned off by foreigners in exchange for real goods.
Economy growing? Maybe - but you would have to demonstrate it to us. Muckmaw clearly does not believe so, since he expect the increase in money supply to run into insufficient production and cause the raise in prices.
miko
