tag:blogger.com,1999:blog-3395111825224617694.post7607838010736337346..comments2023-12-18T16:32:44.437-08:00Comments on Caveat Emptor: We shall overcome?H.A. Blackhttp://www.blogger.com/profile/09028988783310116580noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3395111825224617694.post-23057124753712013822010-03-24T19:56:17.244-07:002010-03-24T19:56:17.244-07:00John, Grow rates like that are not sustainable and...John, Grow rates like that are not sustainable and are not achievable either given all the new taxes embodied in the health care plan. I heard an interview with the owner of a medical imaging firm who said his first order of business would be to fire 24 people so he could get beneath the size threshold. He also mentioned that if he did not the new taxes would exceed his profitability and put him out of business.H.A. Blackhttps://www.blogger.com/profile/09028988783310116580noreply@blogger.comtag:blogger.com,1999:blog-3395111825224617694.post-7006374090084808972010-03-22T20:28:56.651-07:002010-03-22T20:28:56.651-07:00With this health care mess that just passed, the d...With this health care mess that just passed, the dems claimed that it would cut the deficit by 138 B the first 10 yrs. and 1.2T the next ten years. I thought that sounded fishy so I looked up the CBO preliminary estimate that they referred to. The report never mentioned 1.2T directly but said that it could cut the deficit by an amount around the range of .5% GDP. Now I did the math, and I came up with this. We are at about 14.5T GDP now. We would have to reach 20T GDP by 2020- the beginning of the second decade - and reach 28T by 2030, to average 24T for the whole second decade (1.2T = 24T x 10years x .5%). This would mean that we would need to grow GDP by 40% per decade from now until 2030. My question is, is this a reasonable number (a)historically and (b) given that we have free trade with China? I don't think our GDP will grow that fast unless it is due to inflation of the dollar.John in KYnoreply@blogger.com