Third-quarter data for 2009 is misleading, because most of the growth in GDP is only temporary and will cost us the same, or more, in the near future. Economic prognostics should not be based on GDP data, but on sound economic theory.
Posts Tagged ‘consumption’
The Broken Window
Bastiat’s metaphor for explaining how destroying wealth to stimulate production of the same exact wealth does not stimulate economic growth. It is the basic metaphor for all arguments against state expenditures, and used heavily by economist Henry Hazlitt in his book “Economics in One Lesson”.
