Comments (13)

• Matt

  Education and Health Services are also growing. Ohh wait, since the former is government run, and latter mostly government run, it isn't really a positive.

  Published: December 7, 2008 1:01 AM

• Joe Brochu

  They did just hire a lot of stockbrockers...

  Published: December 7, 2008 5:20 AM

• Miklos Hollender

  Well, in fact they DO produce, just not what the people want and not efficiently.

  A rule of thumb: if a gov't employee does something you would reasonably expect that same type or kind of service could be sold on a free market too, he DOES produce, just usually not efficiently enough and not exactly that what's needed. Examples: education, building roads, healthcare, etc.

  Published: December 7, 2008 7:32 AM

• Bruce Koerber

  Tumors grow even if the rest of the body is in decline. In fact the growth of tumors is the cause of the decline!

  I do not know anyone who celebrates the appearance and the spread of cancer, do you?

  As we assess treatment we can decide to remove one tumor at a time which would be like exposing Krugman or Bernanke or the plethora of ego-driven interventionists as charlatans.

  Or we can go to the source of the cancer and remove it and follow up with some treatment that purges all remnants. The source of the cancer in America (and subsequently in the world since the dollar is being used currently as the world reserve currency) is the unConstitutional coup. We need to surgically remove this tumor by exposing the membership of the inner circle of the unConstitutional coup and subjecting them to the wrath of the people of the world who have been torn by wars and victimized by their puppet tyrants for generations now.

  The re-education of humanity about the principles of classical liberalism will further cleanse the system of the disease of socialism, fascism, and empirical economics.

  Once cured the organic whole will stabilize as classical liberalism societies begin to pop up and flourish, leading to a classical liberalism civilization and a prosperity that is our birthright.

  Published: December 7, 2008 7:48 AM

• Pat

  Considering that the government is the largest employer in the US, It doesn't come as a surprise. I am surprised the Financial services sector contracted slower than the leisure sector. But then again, maybe the customers are trying to tighten their belts.

  Published: December 7, 2008 8:40 AM

• Virtual Web Symphony

  Though Government don't produce anything but they define and legislate all the policies which triggers consumption leading to growth. So if Government sector and public works sector in future is going to see growth and adding manpower then look around others may just piggyback and join the wagon.

  Published: December 7, 2008 9:05 AM

• Mick

  lulz, war and depression are the health of the state...

  Published: December 7, 2008 11:10 AM

• newson

  so please, more attacks on the gdp construct. george reisman seems to be the loudest voice in decrying the blind use of gdp.

  until there is a general understanding of its flaws as a proxy for healthy economic growth, counterproductive policies will be embarked upon and keynesianism will flourish.

  perhaps someone at mises.org may want to do an article about the history of national accounting figures?

  Published: December 7, 2008 5:32 PM

• GH

  hahaha
  I always remember when someone commented on a blog article on this site saying "GDP=LOL"
  http://blog.mises.org/archives/007152.asp

  Published: December 7, 2008 7:36 PM

• Bruce Koerber

  The very first realization that needs to be made clear and evident to anyone who is listening to economic news is that GDP is the excrement of the model which has been fed data!

  Like most excrement it stinks!

  The model is a Keynesian construct with so many unrealistic assumptions that it would not even qualify as science fiction; it would more rightfully be classified as a demented and dissociated fantasy.

  Empirical economic models are erroneous from the outset. It is like the trajectory of a bullet. Even a small deviation at the starting point causes a tremendously great error at the end. But the error of empirical economics is absurdly great at the beginning because it is the incorrect methodology for the social sciences.

  That is why Greenspan simply resorted to his own arbitrary interpretation of the 'smell' of the economy to decide what to do. Bernanke is more hard core and he will stick to his empirical models.

  All of these empirical economists are fools who have forgotten that they are playing with models and it is their indoctrination (claimed to be 'education and experience') that has given them models not worth the excrement that comes out of its end.

  Published: December 7, 2008 8:55 PM

• newson

  i mean in discussing the economy, we're boxed into talking in terms of keynesian metrics, ie recession being two consecutive quarters of negative growth (even the language is tortured) of gdp.
  

  Published: December 7, 2008 9:42 PM

• Keith

  Quote from Bruce Koerber: "Tumors grow even if the rest of the body is in decline. In fact the growth of tumors is the cause of the decline!"

  Brilliant.

  Published: December 8, 2008 5:47 AM

• Michael A. Clem

  Though Government don't produce anything but they define and legislate all the policies which triggers consumption leading to growth.
  
  You mean they define and legislate all the policies which hinder consumption and obstruct growth...

  ;-)

  Published: December 8, 2008 12:08 PM