Heritage Report to Put Smile on Face

That Heritage piece to which I linked earlier - Tax Rebates Will Not Stimulate The Economy - is one for the archives. I look forward to reading this for a chuckle the next time I'm feeling a bit down. Comedy gold: Economic growth requires four main factors: 1) a motivated, educated and trained workforce; 2) sufficient levels of capital equipment and technology; 3) a solid infrastructure and 4) a legal system and rule of law sufficient to enforce contracts. All true, except Brian M. Reidl hilariously omits another factor required for economic growth, a factor that drives about 70% of economic growth - consumer spending. So, yes, Mr. Reidl, tax rebates will, in fact, stimulate the economy. Components of Gross Domestic Product, 2007 Q3 (in billions of dollars) Personal consumption expenditures 9,785.7 Gross private domestic investment 2,162.9 Net exports of goods and services -694.7 Government consumption expenditures and gross investment 2,716.5 Gross domestic product (total of above) 13,970.5
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