Economics Questions

Re: Is state spending >50% even physically possible?

Wheylous — Tue, 16 Oct 2012 21:20:08 GMT

I'm glad I'm an econ major and caught that.

Re: Is state spending >50% even physically possible?

Samuel Smith — Tue, 16 Oct 2012 16:50:55 GMT

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.

Re: Is state spending >50% even physically possible?

Wheylous — Tue, 16 Oct 2012 16:35:04 GMT

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.

Is state spending >50% even physically possible?

Samuel Smith — Tue, 16 Oct 2012 11:29:12 GMT

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?