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View Diary: Dean Baker: How much unemployment was caused by Reinhart & Rogoff (74 comments)

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  •  I am sorry but your understanding of economics (6+ / 0-)

    is off.  The police officer gets a salary that he then uses to buy goods and services which provide others with income.  The guns that taxpayers provide him or her are probably manufactured here in the US so the employees of the guns are working and making money.  The people who produced the steel that goes into making the guns are being employed and earning income.  The truck drivers that transport all the goods are working.  And on and on.....the same chain of events applies to the police uniforms (although its more likely that textiles are made out of the country).

    There is absolutely nothing wrong with using GDP to measure the amount of money and commerce in an economy......but indeed its not the holy grail....there isn't really any one piece of economic data that qualifies as such.  They all have to be understood in the proper context.  Right now, too much of our GDP is comprised of the F.I.R.E. sectors which generate a lot of money but not many jobs (not too mention financial institutions being too large and risky etc etc etc)

    "The Earth is my country and Science my religion" Christiaan Huygens

    by Auburn Parks on Fri Apr 26, 2013 at 07:58:08 PM PDT

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    •  Ah (0+ / 0-)

      The Broken Window Fallacy!

      You either produce something of value, or not. We don't need extra non-value-add activity.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Fri Apr 26, 2013 at 10:12:48 PM PDT

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      •  The entire health insurance industry (0+ / 0-)

        is extra non-value added activity - simply an additional profit making administrative layer siphoning off health dollars. They make money if the goods and services AREN'T provided. How screwed up is that?

        “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

        by Phoebe Loosinhouse on Sat Apr 27, 2013 at 02:43:25 AM PDT

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