Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (60425)	7/24/2002 4:30:10 PM
From: Dave	Read Replies (2) \| Respond to of 77400

Mindmeld, Thanks for the reply. Let me clarify my statement. When I use the term "perpetual" GDP growth, what I meant to say is that I believe that the major cause of this GDP growth is the increase in Government Spending and not due to a "healthy" economy and that the growth is not "perpetual" in this instant of time. That is why I do not believe this so called "growth" is perpetual. Instead, if we assume that the economic climate is the same next year, in order for GDP to grow again, the Government will have to spend even more money causing our country to go further in debt and cause our interest expense on our debt to rise. While many maintain that our Federal Government had a "budget surplus" in the late 90s, that assertion is actually a myth since the taxes collected are not matched with their expenses. This goes back to the "Social Security" argument, etc. I believe that in these "troubled" times that it is unfortunate that our government does not make the difficult choices in order to ensure future growth. This is why I believe that this "GDP growth" is not perpetual since I believe that the rise in GDP is due to increased government spending rather than spending by corporations and our citizens. Another thing to consider is that while the government posted GDP growth, why did the rate of unemployment rise in this period? There simply is a disconnect.