Saturday, 2 January 2021

A More Realistic Measure of "Economic Growth"?

If we can agree that GDP growth is a good thing for the economy, that an increase in the money supply is a bad thing, and that increased saving (from an already extraordinary low level) is a good thing, then subtracting money supply growth and adding saving growth to GDP must be a more realistic (or less worse) measure of economic growth than "real GDP", would it not? 


And using Gross Saving (which also includes the lack of government saving) and the "true money supply", economic growth looks even bleaker. 


And if we agree the stock market ought to be at least partially linked to "economic growth" over the longer term, this is one magnificent U.S. stock market bubble







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