Tag Archives: Gross domestic product

Do We Really Need Economic Growth?


By Marcin Gerwin, Richard Heinberg – The aim is to encourage people to consume every year more goods and services so that the Gross Domestic Product continues to grow. Do you think it’s a realistic approach?

Ultimately, economic growth can’t be maintained in any country simply because it implies increased extraction and use of resources. After all, we live on a finite planet.

The no-growth economy was the norm, historically, up until the 19th and 20th centuries; in fact it was the expected condition of economies throughout most of the human history. more> http://tinyurl.com/q9jkyw9

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Get Ready For A New Way To Measure The Economy


BOOK REVIEW

The Structure of Production, Author: Mark Skousen.

Economic Logic, Author: Mark Skousen.

By Mark Skousen – Starting in spring 2014, the Bureau of Economic Analysis will release a breakthrough new economic statistic on a quarterly basis. It’s called Gross Output, a measure of total sales volume at all stages of production.

It’s about time. Starting with my work The Structure of Production in 1990 and Economics on Trial in 1991, I have made the case that we needed a new statistic beyond GDP that measures spending throughout the entire production process, not just final output. GO is a move in that direction – a personal triumph 25 years in the making.

GO is a measure of the “make” economy, while GDP represents the “use” economy. Both are essential to understanding how the economy works. more> http://tinyurl.com/py6vyg4

America on the brink of economic suicide


By Dave Nalle – In 2012 we were already at a critical point: The yearly budget of the government had reached 20 percent of the nation’s Gross Domestic Product. As the implementation of the Affordable Care Act proceeds, the healthcare industry, which comprises almost 20 percent more of the economy, will come more and more under government control. This puts us at a higher level of government control of the economy than almost any other European nation, including some which have socialist governments.

This nation was founded on the principle of free markets and minimal government. For most of its history, through the end of the 19th century, the size of government was never a threat.

The shift of power and control to government with the costs put on the backs of a shrinking number of small businesses and middle-class workers is a formula for economic suicide. more> http://tinyurl.com/mw7ka8l

How nanoelectronics is revolutionizing healthcare



By Mieke Van Bavel – The cost of providing adequate healthcare consumes a growing fraction of the GDP in countries across the globe. In absolute numbers, this amounts to 6.5 trillion dollars worldwide. A major part is spent on hospital and ambulatory care.

What the healthcare sector needs, are key enabling technologies. Like a cheap technology that allows accurate and reliable diagnostics for everyone, at any place and at any time. Or a technology that enables to hunt for very rare cells inside our body, like circulating tumor cells, giving a very early indication of diseases like cancer. Or tools, like compact bioreactors, to predict drug efficacy, toxicity and side effects in an early stage. more> http://tinyurl.com/ozonyxm

No, the Fed’s Buying Spree Doesn’t Have to End in Tears


Traders at the New York Stock Exchange, June 21, 2013. (Richard Drew/AP)By Rana Foroohar – There are some historic case studies that give clues as to how QE may end. The smart folks at London-based Capital Economics recently looked at how major shifts in monetary policy played out in 1994 (during which time the bond market crashed) and in the early 1950s (when it didn’t).

Between 1942 and 1951, when America was dealing with an event even larger than the 2008 financial crisis: World War II and its aftermath. The bond-buying program then was nearly as large as today (the Fed’s holdings reached 11% of GDP in 1945, versus 12% now, from a lower base). And it was arguably just as urgent. The 1940s version of QE was meant to keep borrowing costs low to finance the war effort. more> http://tinyurl.com/o35csss

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