tag:blogger.com,1999:blog-8358039.post1533339927466152137..comments2024-03-25T15:17:04.488-07:00Comments on Captain Capitalism: This Chart Deserves More AttentionCaptain Capitalismhttp://www.blogger.com/profile/05620212946121617985noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8358039.post-14326425898773404702009-12-22T07:10:58.936-08:002009-12-22T07:10:58.936-08:00Aw Cappie, you're using those hard Keynesian t...Aw Cappie, you're using those hard Keynesian things again. You should try the "new math", like the HPI. (Happy Planet Index). That would definitely show an improvement over that hard, old, algebra thingie.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-37153685142937762522009-12-21T16:29:49.336-08:002009-12-21T16:29:49.336-08:00Listen up Cappy Cap, ol' chap. It's not ju...Listen up Cappy Cap, ol' chap. It's not just a US problem, although there are very specific US issues you address.<br /><br />The plain fact is that we can spend 100% of GDP on healthcare and welfare and we would still get sick and die. Therefore, these things must be rationed, either through price or queue theorey (rationing).<br /><br />So far, the US has resisted the socialist temptation of the politicians, but it looks like you are succumbing - I hope I am wrong and you will rise up against statist control of your lives.Robert of Ottawanoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-66140315474234303712009-12-21T14:54:25.530-08:002009-12-21T14:54:25.530-08:001. A decline in real GDP growth is not a "ha...1. A decline in real GDP growth is not a "halving of our ability to produce." It is a halving of our growth in production, which is very different. Yes, it is a nitpick, but I think it is a relevant one. <br /><br />2. What would be more relevant is our GDP per Capita. And what would then be very relevant is our GDP per productive citizen. That would allow you to examine the growth in productive output without looking at changes in demographics and population at the same time. <br /><br />3. Given the two points above, your statement that we have halved our ability to enrich ourselves is incorrect. Your point must be examined in the context of demographics as well as in the fact that you are examining growth in real GDP, not absolute real GDP, and not absolute GDP per capita.<br /><br />4. I believe your base conclusion, which is that government programs that grow faster than the economy are ridiculous, is correct. Your additional normative prescriptions are also correct when it comes to degrees and taxes. <br /><br />5. Your comment about unfunded pension plans and 401k plans is a mix of a few different things. While the DCF valuation of something with limited growth is of course lower than that of something with positive growth, most positive growth comes with required capital expenditure, offsetting to a certain extent the value actually created by the growth. The impact on stock valuations of reduced growth is not necessarily damning if you also reduce the capital expenditure associated with that growth. If you look at it from a simplistic perspective of just discounting dividends assuming that dividends grow at a certain amount every year based on GDP, then that could be correct, but your base dividends would be higher as well if you did not have to spend capital on growing the business, so it is more complex than one may at first assume.<br /><br />Overall, I agree that both declining productivity growth (if that is what this actually represents) and increases in government expenditure at a rate faster than GDP growth are terrible occurrences in our society.VancouverGuyhttps://www.blogger.com/profile/16249093887857923600noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-36669686761000169492009-12-21T12:22:23.952-08:002009-12-21T12:22:23.952-08:00Captain,
All this chart does is prove once again,...Captain,<br /><br />All this chart does is prove once again, that Socialism leads to economic ruin and collapse.<br /><br />In the case of America it may well lead to civil war as it should.<br /><br />I am Canadian. I live in the USA for ten years in the 60s and 70s. I always thought I made a mistake coming back to Canada, but not anymore.<br /><br />You Americans are screwed and I think you will need someone like Sarah Palin in for two terms as president if you ever hope to get out of the mess you are in.<br /><br />Obama is burying you as he planned.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-77870906204603728592009-12-19T18:50:40.097-08:002009-12-19T18:50:40.097-08:00"Where do you think the real production in th..."Where do you think the real production in this economy comes from? ACORN employees? Government funded art projects? Rebuilding roads that needed to repairing?"<br /><br />Needs a "no."DaFatalGigabytehttps://www.blogger.com/profile/03798968684139970206noreply@blogger.com