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Stimulus and Meat
Podcast #17:So-Called Stimulus Sucks, How Long Before You Can Eat Your Meat!
Hello folks, and welcome back to In My Right Mind. This is the grandiloquent Russ Andrews along the ever-loquacious PJ Jaycox. Have you missed me buddy?
My whole family travelled to New Orleans for 9 days to witness the marriage of my son Dalton to the beautiful Jenny Hathaway…or Jenny Andrews, now. I hosted a crab feast one night, and a $400 crawfish boil the nite before the wedding. The wedding was beautiful, with the lone exception being my speech/toast/roast which I should have spent more time editing…so I’m told.
On Saturday after the wedding about 50 of us wandered down to Bourbon Street, which really isn’t my thing; I’m guessing that about 1/5 of the people there are mere predators. Three people who don’t spend much time in such environs had their wallets stolen. Piece of advice: when in large crowds or foreign places like that, I ALWAYS carry my valuables in my front pockets. Because of our anatomies, that area of our bodies….at least for males and females…is generally more sensitive than is the area around rear pockets. Now if you self-identify as one of the OTHER 62 genders the POS, or the Party Of Science has discovered, well, sorry, but this show is really just for…..men and women.
There had been no live music for exactly one whole year. The place was rocking, and my wife Lori made the observation that America is open for business!
After taking off for two blissful weeks, where do we possibly begin PJ?
The so-called $timulus is a good place.
I have often talked about the Magic Multiplier effect of government spending on the radio, and I know we spent the better part of a podcast covering magic $$$. The Obamatron-neo-keynsians often claimed that every dollar spoent by the gov’t increased economic output by $1.50. The dimm-witted Nancy pelosi…(could I have anooother scotch pls) claimed back on 2009 that every dollar the gov’t spends creates $1.72 in GDP. BUT, not so fast.
My three favorite economists are in order; Brian Wesbury from FT in Chicago, Dr. Robert Barro from Haaavaard, and Dr John taylor from Stanford. To varying degrees, all 3 have shown that when the gov’t spends a dollar, we get LESS than one dollar in economic output.
This is a little bit of inside baseball stuff on economics, but I believe it is germane to this discussion. Most people believe that economic output is the same as gross domestic product…or GDP. Sorry Grandma GooGoo, aka Nancy Pelosi…but you are mistaken. Simply put, GDP is a measure of value added at the national level:
When a furniture manufacturer buys wood from a saw mill for $100 and adds value to it by producing a piece of furniture which is then sold for $400. Economic output would total $400—the value of all sales in the chain of activity. The value of the wood is therefore counted twice—once as an intermediate good for the furniture manufacturer and again in the value of the furniture.
Value added focuses only on additional value of goods and services produced, thus is defined as economic output less intermediate inputs.
That is, Value added = Gross Output – Intermediate Inputs.
The value added in the previous example totals only $300 (as opposed to $400 economic output). This is because value added subtracts the sale of the purchased wood (intermediate input) of $100 from the total sales price of $400, resulting in value added of $300, or $300 added to GDP.
In any event, Dr Barro has shown that when the government spends a buck for WARTIME purchases, the economic output is about 80 cents. In other words, 20 cents is lost in the ether. He has gone on to show that when...
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By Russ AndrewsPodcast #17:So-Called Stimulus Sucks, How Long Before You Can Eat Your Meat!
Hello folks, and welcome back to In My Right Mind. This is the grandiloquent Russ Andrews along the ever-loquacious PJ Jaycox. Have you missed me buddy?
My whole family travelled to New Orleans for 9 days to witness the marriage of my son Dalton to the beautiful Jenny Hathaway…or Jenny Andrews, now. I hosted a crab feast one night, and a $400 crawfish boil the nite before the wedding. The wedding was beautiful, with the lone exception being my speech/toast/roast which I should have spent more time editing…so I’m told.
On Saturday after the wedding about 50 of us wandered down to Bourbon Street, which really isn’t my thing; I’m guessing that about 1/5 of the people there are mere predators. Three people who don’t spend much time in such environs had their wallets stolen. Piece of advice: when in large crowds or foreign places like that, I ALWAYS carry my valuables in my front pockets. Because of our anatomies, that area of our bodies….at least for males and females…is generally more sensitive than is the area around rear pockets. Now if you self-identify as one of the OTHER 62 genders the POS, or the Party Of Science has discovered, well, sorry, but this show is really just for…..men and women.
There had been no live music for exactly one whole year. The place was rocking, and my wife Lori made the observation that America is open for business!
After taking off for two blissful weeks, where do we possibly begin PJ?
The so-called $timulus is a good place.
I have often talked about the Magic Multiplier effect of government spending on the radio, and I know we spent the better part of a podcast covering magic $$$. The Obamatron-neo-keynsians often claimed that every dollar spoent by the gov’t increased economic output by $1.50. The dimm-witted Nancy pelosi…(could I have anooother scotch pls) claimed back on 2009 that every dollar the gov’t spends creates $1.72 in GDP. BUT, not so fast.
My three favorite economists are in order; Brian Wesbury from FT in Chicago, Dr. Robert Barro from Haaavaard, and Dr John taylor from Stanford. To varying degrees, all 3 have shown that when the gov’t spends a dollar, we get LESS than one dollar in economic output.
This is a little bit of inside baseball stuff on economics, but I believe it is germane to this discussion. Most people believe that economic output is the same as gross domestic product…or GDP. Sorry Grandma GooGoo, aka Nancy Pelosi…but you are mistaken. Simply put, GDP is a measure of value added at the national level:
When a furniture manufacturer buys wood from a saw mill for $100 and adds value to it by producing a piece of furniture which is then sold for $400. Economic output would total $400—the value of all sales in the chain of activity. The value of the wood is therefore counted twice—once as an intermediate good for the furniture manufacturer and again in the value of the furniture.
Value added focuses only on additional value of goods and services produced, thus is defined as economic output less intermediate inputs.
That is, Value added = Gross Output – Intermediate Inputs.
The value added in the previous example totals only $300 (as opposed to $400 economic output). This is because value added subtracts the sale of the purchased wood (intermediate input) of $100 from the total sales price of $400, resulting in value added of $300, or $300 added to GDP.
In any event, Dr Barro has shown that when the government spends a buck for WARTIME purchases, the economic output is about 80 cents. In other words, 20 cents is lost in the ether. He has gone on to show that when...