Sometime ago I heard Warren Buffett state that the GDP of the United States amounted to $50,000 per citizen. I don't know how that was calculated and whether it was net of costs to produce that result. However, it makes me wonder. If the US economy private and public sectors was working at full capacity, available capital was fully employed and a trade policy was followed that took into consideration comparative advantage, would there not be enough for everyone?
For instance, assume an economy where all citizens got good but reasonable education, housing, food and medical care in addition to clean air and clean water. What percent of GDP would that use? How much would be left over to be distributed in a competitive fashion?
I think it would be useful if at least some economists go through such an exercise, Tell us the results and indicate what mix of private and public sectors would most efficiently create that result. I think that would be far more useful than endlessly arguing about the merits of each others DS GE models. It would also allow politicians, should they be so bold, to tell the populace that there is enough for everyone and it doesn't have to be taken from somebody else who feels disadvantaged. It probably would require diminishing the share of those who are hyper advantaged.
Perhaps this information is available and I just don't know where to get it.
Returning to dismal reality. The Republicans now own the economy. They will have a short honeymoon if some measure of fiscal stimulus is inacted and if they allow money from foreign affiliates to be repatriated at little or no tax. (it would be nice if the recipients were required to spend it on capital expansion research and development and not stock buybacks. More fantasy) they will not be able to fulfill their promises. Even now, their economic–you should excuse the expression–team is probably devising anticipatory lists of negative externalities and exogenous as events.
For the next four years, Shakespeare was right. Life really is a tale told by an idiot, Full of sound and fury and signifying nothing.
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