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View Diary: Occupy the tax code: why taxing the rich will make the economy soar (79 comments)

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  •  You lost me at "GDP = spending". (1+ / 0-)
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    johnny wurster

    It doesn't. Per Macroeconomics 101:

    GDP(Y) = C+I+G+NX.

    C = spending on consumption.
    I = Investment.
    G = Government spending on goods & services.
    NX = Net Exports.

    •  He included (0+ / 0-)

      all four of your pieces into a generic "spending."

    •  All of which are spending for real things. (0+ / 0-)

      Consumer spending for real things (the C)
      Business spending for real plant and equipment (that's gross investment, the I)
      Government spending on real things (the G)
      and the export/import adjustment (which is also real things).

      We are all in the same boat on a stormy sea, and we owe each other a terrible loyalty. -- G.K. Chesterton

      by Keith Pickering on Sat Dec 31, 2011 at 10:53:44 AM PST

      [ Parent ]

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