Just reading this article: http://www.telegraph.co.uk/finance/financialcrisis/9610717/French-business-erupts-in-fury-against-disastrous-Francois-Hollande.html and it says that French state spending has risen to 55% of GDP.
How is this possible? How is it possible for the parasite to consume more than 100% of what the producers produce? Clearly, they need to run a deficit for this... but the "leftists" believe that it can be done sustainably.
What is their logic?
What? Farmer Bob makes 10 pounds of carrots, the government takes 6. 60% spending to GDP (assuming the government consumes it and does not produce anything).
Whoops, did not mean to suggest it.
Shit, you're right. Complete fail on my behalf. My thinking was: Bob makes 10 carrots, Government takes 6. Output is 16 carrots (what?). Government spending is 6 out of 16, so... 37.5% of GDP. God knows how I managed to slip up like that.
I'm glad I'm an econ major and caught that.
/s