Friday, October 28, 2016

David Stockman* Says:
Fiscal Stimulus Is Just An Excuse 
To Grow Government
And Everyone Should Try To Understand The Point He Is Trying To Make
"Between 1870 and 1913, the real GDP of the United States — as best they can estimate it — rose from $20 billion to $131 billion (1958$). That gain of 4.3% per annum compounded over 43 years is the highest real GDP growth on record for a continuous equivalent period of time. But here’s the wonder of it .. During that golden age of growth and prosperity, the U.S. had no central bank and not even one episode of fiscal stimulus! .. Compared to the last 9 years when we have had a tsunami of monetary stimulus, how did we get 8X more per capita growth in real GDP during the 43-year period ending in 1913? After all, the almighty Fed did not even open its doors for business until the fall of 1914 .. The public debt stood at $10.6 trillion in January 2009 and that by the time Obama’s successor is sworn in it will total $20 trillion. What that means, of course, is that Barack Obama will have added nearly $10 trillion to the national debt during his tenure. That nearly matches the total amount of public debt incurred during the first 220 years of the Republic under Obama’s 43 predecessors in the Oval Office."
LINK HERE to the essay

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