Posted: Fri Nov 30, 2007 6:02 am
Not just that. 1. GDP can be inflated and 2. GDP can be wasted.
No matter how many times an economist repeats it, 'consumption' is not good for the economy, investment is. Why would a country want to expend its resources on investment rather than consumption? 1. it conceives of improvements and 2. it wishes to get ahead of other nations, so as to be able to defend itself.
The thinking is that if consumption dropped dramatically there'd be less of a drive for the economy, but what if an economy spent its resources on continued investments? E.g. research, improved productivity for what is used, training, and the environment, beautifying projects that improve happiness and thus productivity, autarky so as to increase sovereignty, and perhaps leisure activities that offer value for their improvements in virtue and happiness (which then leading to lower crime, better children, stable and durable society, etc.)
Traditionally greed has been viewed as dishonorable and opposed to society's interests. America has embraced the mantra that 'greed is good' and drives the economy. We're living with the corrupt and traitorous result as folks have realised breaking and changing the rules is far more profitable than not - and if everyone's out for his own interests anyway, why not if one can get away with it?
I'm not a socialist btw, I'm actually categorised as right wing if capitalism is put back on the left where it originated (Smith was a liberal), but there are ways a state can manipulate its economy.
No matter how many times an economist repeats it, 'consumption' is not good for the economy, investment is. Why would a country want to expend its resources on investment rather than consumption? 1. it conceives of improvements and 2. it wishes to get ahead of other nations, so as to be able to defend itself.
The thinking is that if consumption dropped dramatically there'd be less of a drive for the economy, but what if an economy spent its resources on continued investments? E.g. research, improved productivity for what is used, training, and the environment, beautifying projects that improve happiness and thus productivity, autarky so as to increase sovereignty, and perhaps leisure activities that offer value for their improvements in virtue and happiness (which then leading to lower crime, better children, stable and durable society, etc.)
Traditionally greed has been viewed as dishonorable and opposed to society's interests. America has embraced the mantra that 'greed is good' and drives the economy. We're living with the corrupt and traitorous result as folks have realised breaking and changing the rules is far more profitable than not - and if everyone's out for his own interests anyway, why not if one can get away with it?
I'm not a socialist btw, I'm actually categorised as right wing if capitalism is put back on the left where it originated (Smith was a liberal), but there are ways a state can manipulate its economy.