Thursday, January 22, 2015

GDP

US GDP sputtered around $15 trillion from 2008 to 2011.  It was reported in the $16 trillion range from 2012 to 2014 when it was reported in the $17 trillion range.  It felt like our economy has been shrinking, so I don’t trust these government numbers.
Georgia was ranked 41st in GDP growth from $373.9 billion in 2008 to $374 in 2012. Georgia had the 10th largest economy.
States with the largest GDP include California with $1.75 trillion, Texas at $1.2 trillion and New York at $1 trillion.
States with bigger GDPs than Georgia include Florida at $672 billion, Illinois at $594 billion, Pennsylvania at $511 billion, New Jersey at $446 billion, Ohio at $435 billion, North Carolina at $392 billion and Virginia at $385 billion.
Economic recovery requires increases in production of all goods and services, but government spending is included in our GDP, so it’s hard track the decline of free market production.  I would guess that government spending is at least 40% of GDP, but should be closer to 10% if we want to revive “main street”.  American consumers needing to maintain their current standard of living, on its own, would probably amount to $12 trillion a year. 
There are at least $4 trillion in bubbles that are unsustainable. Most of this is sitting in big bank liquidity accounts.  The velocity of the dollar is low and consumers are being starved to extinction. This, by itself is keeping inflation low for now.  US debt and unfunded liabilities at $100 trillion is way too high for a federal government with a $3 trillion per year income.  Federal spending cuts need to be severe if the liabilities are going to be reduced to more manageable levels.  Closure of unconstitutional federal departments and returning these functions to the states is the best way to shrink the federal government. Immigration needs to be reduced back to pre-1989 levels immediately.
Norb Leahy, Dunwoody GA Tea Party Leader

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