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  • Why GDP Is Useless and Deceptive [View article]
    Actually, Daniel, what he said is that you confuse money with wealth.
    Jul 2, 2011. 07:29 PM | Likes Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    I'm very disappointed, Daniel, that you approached this in a disputive way. Shostak does have a Ph.D. in economics so he may know a thing or two. Also he was chief economist for MF Global. You make very elemental errors in your critique. And, I don't know of anyone who has "discredited" Austrian theory. Those who do haven't read it. If you were willing to learn, I would take the time, but you aren't. You only wish to argue. Please start on the reading list on my blog if you wish to discuss this further. But, thanks for reading.
    Jul 2, 2011. 07:26 PM | 1 Like Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    Then the first thing I would point you to is Hayek's Nobel lecture where he discuses epistemology and econometrics. nobelprize.org/nobel_p...

    As a moral philosopher it would be right up your alley. It is more complicated than "you can measure things." Let me know what you think.

    Jeff
    Jul 2, 2011. 07:21 PM | Likes Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    GDP as announced and relied upon is "real." One flaw is that they never seem to catch up with actual inflation. Especially when inflation is running high (as in the '70s).

    Yes, unit value aggregation is at least a bit better than the aggregation of all spending. I don't think GDP tells us anything meaningful. Again, read the Mises quote in the article. What is important is output that creates wealth (savings from profits on sales or saving from wages on the former), without the time distortions created by fiat money injections into the economy. Industrial production is a kind of proxy for real output in my opinion.

    My true point of the article was that the recession never ended.

    For more on the fallacy of GDP, see this article by Austrian theory economist Frank Shostak: mises.org/daily/770 He does a far better job than I.
    Jul 1, 2011. 01:36 AM | Likes Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    See my reply to your same comment on my site, The Daily Capitalist.
    Jul 1, 2011. 01:19 AM | Likes Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    Jaymme,

    I also see this kind of comment quite a bit. With all due respect it tells me that you haven't a very good idea of what Austrian theory economics is. I suspect you are commenting based on what non-Austrian economists have said about it. And they haven't studied either. I know you haven't because of the nature of your comments which contain common misperceptions.

    I appreciate the fact that you read the piece and took the time to comment. But I'm not going to convince you based on what you have said. I consider myself a serious student of Austrian theory and have followed it for 40 years. I even met Mises before he died. But, as they say, so what. For your information, like most folks, I was fed Keynes in college (Samuelson), and studied Friedman, but was rather impressed with the intellectual power and logic of the Austrians. Their epistemological foundations as it applies to the social sciences and especially economics, is quite profound.

    If you would like to learn more about Austrian theory I urge you to go to my site, The Daily Capitalist and go to the reading list page where there is some excellent material on it. Since I and most Austrians have studied your brand of economics, it would only be fair for you to at least understand their thinking.

    I guess my idea is that I wish to challenge you to think outside your box which requires some dedication and intellectual independence. You might consider doing that in the light of the fact that the conventional wisdom, which you seem to espouse, has failed miserably, and TPTB really don't know what to do. You may even like it.

    Also, I don't know why you have to resort to impolite ad hominem remarks to carry on what I thought was a polite and serious conversation about economic theory. I don't think I said anything about the Tea Party. I don't have the time to respond to all your errors, as I have written about this stuff quite often.

    But, thanks again for reading.
    Jul 1, 2011. 01:13 AM | 1 Like Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    What does that mean?
    Jun 29, 2011. 01:52 PM | Likes Like |Link to Comment
  • Why GDP Is Useless and Deceptive [View article]
    I point out the problem with industrial production in the article. OTH, jobs are real numbers, production #s of autos are real numbers, tons of steel, etc., etc. If spending were the key to the economy, then Zimbabwe would have been the richest country in the world. My point is that it is difficult to quantify what a "nation" produces. Hayek and Mises did extensive work on this. It is what Hayek called the fake science of such analyses as "scientistic," i.e., not real science.
    Jun 29, 2011. 01:51 PM | Likes Like |Link to Comment
  • The Great Stagnation of 2011 [View article]
    Old Hand:

    While I would agree with you on Crony Capitalism and that QE doesn't work, I think we disagree on almost everything else. But thank you for the recitation of the Conventional Wisdom that has failed whenever implemented, including now. I don't understand the Right Wing comments, because we are not RW, but from someone who advocates the CW, I can see how you might think that's where we are coming from. I urge you to expand your vision a bit and think outside the box.

    Almost everything you say about your interpretation of the economy is wrong and the data is proving you wrong. You are wrong about the Great Depression as well.

    I have pretty much already stated my case in the article and in past articles. I appreciate the fact you took the time to read the article and comment on it.
    Jun 22, 2011. 02:41 PM | 1 Like Like |Link to Comment
  • Is The Real Estate Market Turning Around? [View article]
    You got it. What I meant is that Mr. Newhomes was spamming this with his comment and link. I was saying we should ignore his comment. Sorry for the confusion.
    Jun 22, 2011. 01:06 AM | Likes Like |Link to Comment
  • The Great Stagnation of 2011 [View article]
    The bottom line is that the government is tightening credit and other standards for lenders and developers, so they are putting a lid on the market. Just wait. Also, why would anyone stop buying Chinese goods? Not going to happen.
    Jun 22, 2011. 01:04 AM | 1 Like Like |Link to Comment
  • The Great Stagnation of 2011 [View article]
    Moon is correct. Most of China's real estate bubble is induced with monetary steroids, but that doesn't mean that there isn't real, organic growth occurring at the same time. But the RE collapse will impact their economy. QE, fiscal stimulus, credit expansion are all roads to hell.
    Jun 21, 2011. 05:39 PM | 1 Like Like |Link to Comment
  • Is The Real Estate Market Turning Around? [View article]
    EB: This is spam.
    Jun 20, 2011. 01:51 PM | 1 Like Like |Link to Comment
  • Sinking Manufacturing a Stagflationary Trend [View article]
    Erik:

    This is Fed G-17 data which I believe is seasonally adjusted. See at: www.federalreserve.gov.../

    Jeff
    Jun 7, 2011. 03:31 PM | Likes Like |Link to Comment
  • Case-Shiller Down 5.1%: What Will Stop It? [View article]
    Chase mortgage just offered me a 3% down deal. Nothing has changed.
    Jun 3, 2011. 07:41 PM | 1 Like Like |Link to Comment
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