Thursday, January 2, 2014

Economic Questions for the New Year

If government spending is counted in GDP and financed by debt, what exactly is the meaning of the debt:GDP ratio?

If economic growth is achieved by producing more with fewer resources, how does devoting more and more land to producing energy from corn, wind-farms and solar-farms produce economic growth?

If the only manufacturing plants that are allowed to operate in the US are those that produce near-zero emissions and China has no such requirement, why is anyone surprised that manufacturing has moved to China? And what exactly should we expect if the US begins taxing carbon emissions?

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