The financial sector receives more of the average paycheck than any other sector of the economy. Its share of the economy totals $2 trillion dollars. In 1985, the financial sector earned less than 16% of domestic corporate profits. Today, it’s over 40%. In the 1960s, finance and insurance accounted for only 4%…
Category: GDP
Economics
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Get Society Rich Quick: The Ideal Level of Government Spending
It is commonly claimed that government spending is good for the economy, but the statistics show the opposite. Most recent studies find a negative correlation between total government size and economic growth. Why is economic growth important? Because wealthier societies are generally happier societies. No matter how good things get for us, we always…
Corporate Welfare
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Historical Examples Show Government Intervention Only Prolongs Economic Downturns
We’re taxing successful, competently run businesses to subsidize irresponsible, poorly run businesses. Until we realize this simple fact, the previous trend of increased productivity and standards of living will only be a memory.
Debt
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The Future of US Government Debt
Those who say “These are extraordinary times. We can’t afford to worry about the national debt now. We’ll be in a better position to deal with that later.” should check out these projections.