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I also understand your reasoning with regard to inflation and growth as indeed many politicians use a similar line. But consider that GDP is a part of inflation. Which is to say, inflation is the increase in money supply above the economic growth. So you are adding two things together of which one is a factor of the other. Know what I mean????????
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When you measure GDP growth, and you aren't a fool, you measure 'real GDP growth'. Ie, you factor out inflation.
Otherwise, with 20% year-over-year inflation (see: late 70s/early 80s), you'd have nominal GDP growth rates of 15%-25%, when in reality they are -5% to +5% or so.
While inflation and GDP growth are related (more precicely, it is not always trivial to seperate the measurement of them), they aren't 'part of each other' if you are careful.
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Ok, so, your saying on the seventh day God edited tfp????
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I think it was the end of the 6th day, if I did my math right.
And it refers to the universe. For the full joke, you'll have to include the exact date (ie, the universe was created in 4004 BC, on october whatever), and the context (the quote above it, by Douglas Adams).
I have a fucked up sense of humour.
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If we agree that shelter is not an option, I can only suggest that if one is financially able, it is prudent to invest through a mortgage rather than rent. Again, only an opinion, although one more easily defended.
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It can be. The tax code makes your primary dwelling capital gains deduction an asset that cannot be used unless you have a primary dwelling that you are purchasing. The other factors depend on your situation, but the capital gains excemption on primary dwellings is a large factor that should distort your choice towards buying a home.
I'm pretty down on consumer debt, but house ownership is one of the rather valid reasons to go into debt.
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But the personal debt issue is a red herring.
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Agreed.
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we are really discussing the transfer of assets from one individual to another through taxation - irrespective of their personal debts.
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*nod*, to a certain degree.
There are a few things going on here.
First, there is socialization of risk. If you are in a situation where your business fails, your family will starve, you will be paranoid about making sure your business succeeds. Possibly more than you'd want for a strong economic engine.
Similar effects occur in the labour market. If losing your job is extremely dangerous, labour force flexibility suffers -- quick, unstable, or other kinds of non-career jobs become overly risky for people to take. If the only safety net you can rely on is that of your family and friends, labour force mobility suffers. Moving to get a new job costs you family and friends support, which could be economically disasterous.
Having a low standard of living ratio between the people in an area keeps crime down (last I checked, it was one of the best predictors of murder rates). Living 'next' to someone who is 100 times poorer than you causes social strain and encourages crime.
On the other hand, reduced marginal reward for economic output causes a disincentive to produce economic output*. Social safety nets can encourage people to stay in areas that lack the potential to produce employment. It increases the unemployment rate by making people less desperate to get any job they can get their hands on.
Finally, social security has, or so I've heard, interesting effects on birth rates. The more secure people feel about their old age, the fewer kids they have. Kids are a great way to make sure you are taken care of in your old age.
* note: this is a very big point. Economic Output = Wealth. And Wealth is a good thing. Lack of Wealth is starvation and poverty and death and powerlessness.
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PS, do you think anyone else is still reading this thread or is it just us?
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Well, just you. I'm an advanced AI designed for message board discussion.
The trick is, I find a similar thread in another forum, correlate your arguements with arguements and responses made there, generate a response, then do some post-processing typos, grammer checks/errors, and the like.
Works pretty well. I kick
Eliza's ass.
You did ask.