Economy

One of my criticisms of Keynesians is they treat all work the same. Digging ditches with a spoon and filling them back in is treated the same as doing something productive. This article about how GDP misrepresents the economy is the first time I've seen a Mises scholar make that point.

"For example, even if a ship — built at great expense — cruised without passengers, fished without success, or ferried without cargo; it nevertheless contributed to GDP. Profitable for investors or stranded in the sand; it added to GDP. Plying the seas or rusting into an orange honeycomb shell; the nation’s GDP grew."

Good to see.

Why do we want higher housing prices?

David Stockman reports our economy stinks and stocks are in a bubble.

"Sooner or later you can’t squeeze more profits from a stone cold economy.So why should earnings be valued at an all time high when the US economy is now growing at just one-third of its historic rate?"

That makes no sense.

"To wit, the US economy has actually shed 2 million full-time, higher paying “breadwinner” since December 2007—-down from 72 million to just 70 million in the April report. Accordingly, the net 3 million gain in the total payroll count is entirely attributable to a 2 million pickup in the part time economy—restaurant’s, bars, retail and  personal services—-and a 3 million gain in the fiscally dependent HES Complex (health, education and social services)."

That's not good.