PCTconomics (was Re: Happy New Year,and Starting Over)

CSGnet Archive CSG1999
1

[From Rick Marken (990125.2030)]

Me:

one piece of data in "Leakage" seems rather unequivocal; the fact
that exactly 20% (+-1%) of GNP has gone to capital investment
over the last 100 years.

Mike Acree (990125.0938 PST)

I have no idea what to make of it, but it hadn't set up any
particular conflict in my beliefs just because my beliefs
about that were never that well defined.

I, too, had thought little about economics before I read TCP's
book so it took me a while to realize what this little tidbit
means. It means that one of the fundamental assumptions of
"free market" economics -- the assumption that capital investment
drives the economy -- is false. It means that people (mostly
Republicans) who say that we have to cut the capital gains tax
in order to stimulate the economy are (perhaps unintentionally)
lying; TCP's data (like Monica's stained dress) proves it.

Best

Rick

ยทยทยท

--

Richard S. Marken Phone or Fax: 310 474-0313
Life Learning Associates e-mail: rmarken@earthlink.net
http://home.earthlink.net/~rmarken/

2

[From Bruce Gregory (990126.2015 EST)]

Rick Marken (990125.2030)

I, too, had thought little about economics before I read TCP's
book so it took me a while to realize what this little tidbit
means. It means that one of the fundamental assumptions of
"free market" economics -- the assumption that capital investment
drives the economy -- is false. It means that people (mostly
Republicans) who say that we have to cut the capital gains tax
in order to stimulate the economy are (perhaps unintentionally)
lying; TCP's data (like Monica's stained dress) proves it.

Not necessarily. Suppose we double the capital investment. TCP's data
suggests that the economy should grow by 400%, no?

Bruce Gregory