Lawry de Bivort wrote:
> I'm sure this is a dumb notion, but if we all went out and earned and
> spent our money twice as fast, would this not double the GDP?

Yes it would, because GDP is measured for a unit of time (1 year for
nations, 3 months for companies).  So it you spend $1000 during this year,
you double the GDP (contribution) in this year, compared to spending $500
this year and $500 the next year.  The average for 2 years would be the
same, but economists (and politicians) think in the short term.  And if
nobody buys a car for a year (due to a "crisis"), the car industry gets
serious problems to survive, even if the purchases are just postponed...

> There must be something wrong with this idea!

... or with the math understanding of some people.

Cheers,
Chris





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