First, note that both parties are ruining our economy, and electing a Republican doesn't even come close to solving our economic crisis (obviously, electing a Democrat is probably worse). The problem is, as Denninger contends, for decades, Republican politicians have been spreading the pernicious myth that government can spend pretty much all it wants if you have the elixir:
"Economic growth and lower taxes to spur progress."
Under current conditions, this is mathematically impossible, as Karl Denninger's chart shows (link). Which is why Ryan's budget is a disaster waiting to happen, while Obama's budget is a disaster that HAS happened.
Note that Greece tried this idea of not collecting taxes from major sources, while paying generous and early pensions and public salaries, and you see where that got them. (See the US in a few years for a close-up look at Greece now).
Second, that formula GDP = C + I + G + (x-i) is vital to understanding this presentation.
It's simpler than it looks:
C is total private spending, or consumer spending (unfortunately, much of this is borrowed)
I is investment (but it needs to be meaningful investment that can reasonably be expected to bring returns. Banks buying derivatives are not part of this--just the opposite)
G is total government spending (of course, since this is paid for mostly by debt or by printing money out of thin air, then that too is illusory in our case, particularly since the anticipated rises in liabilities like pensions are unsustainable over time)
The lower case I (msn does not allow a lower case I to be typed alone in lower case, unfortunately) is imports and x is exports.
Oh, and if you are relying ONLY on the MSM and what you learned in school, GDP means gross domestic product--total revenues of a nation, generally reckoned for one year.
If you still think that electing a Republican OR a Democrat will help pull America out of this crisis, you had better read this (click on link below).
What America desperately needs is an educated public that will reject the economic policies of BOTH parties and start afresh. The constant see-sawing back and forth between two all-talk parties will only make us dizzy.
I am not saying that defeating Obama is not a priority for reasons other than economic ones. This presentation is all about economics, not politics.
You can choose the white disaster or the black disaster. One is probably worse.
Probably.
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