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Tuesday, January 15, 2008
Heritage Report to Put Smile on Face
That Heritage piece to which I linked earlier - Tax Rebates Will Not Stimulate The Economy - is one for the archives. I look forward to reading this for a chuckle the next time I'm feeling a bit down. Comedy gold:
Economic growth requires four main factors: 1) a motivated, educated and trained workforce; 2) sufficient levels of capital equipment and technology; 3) a solid infrastructure and 4) a legal system and rule of law sufficient to enforce contracts.
All true, except Brian M. Reidl hilariously omits another factor required for economic growth, a factor that drives about 70% of economic growth - consumer spending. So, yes, Mr. Reidl, tax rebates will, in fact, stimulate the economy.
Components of Gross Domestic Product, 2007 Q3 (in billions of dollars) |
| Personal consumption expenditures | 9,785.7 |
| Gross private domestic investment | 2,162.9 |
| Net exports of goods and services | -694.7 |
| Government consumption expenditures
and gross investment | 2,716.5 |
| Gross domestic product (total of above) | 13,970.5 |
Posted by Craig Jennings
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