Can We Please Stop Pretending the GDP Is Growing“?

Through the miracle of simple arithmetic, Charles Hugh Smith is able to bring you this analysis of federal spending and the American GDP that I guarantee you won’t see in any Federal Reserve publication or on any business or national news program:

    The Federal government borrowed and spent $5.1 trillion over the past four years to generate a cumulative $700 billion increase in the nation’s GDP. That means we’ve borrowed and spent $7.28 for every $1 of nominal “growth” in GDP. …
    If you borrowed $7 to get $1 in your pocket, would that strike you as a good deal? How long do you reckon you could borrow $7 to get $1 of “growth” in your finances?
    Let’s say you need $3,000 a month to pay all the household bills. No problem, just go borrow $21,000 and your household economy will “grow” by $3,000. If this isn’t the height of fiscal nonsense, then what is?

Please follow the link above and read the entire article. Warning: do not have a mouthful of coffee when you do so.