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Old Dec 14, 2005, 11:31 am   #2 (permalink) (top)
bishop
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in our economy, higher gdp growth pretty much always coincides with a larger trade deficit - because 2/3 of the economy if fueled by consumption and we import more than we export.

and federal spending contributes to a larger GDP figure. lowering federal spending would decrease our GDP. this is why we had big GDP growth in 2001-2002.

GDP is simply a statistic, you can't directly influence it, but you can influence spending and trade policies.


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