The growth illusion

In an attempt to manage economic outcomes, governments pursuing GDP growth end up with economic and currency destruction. No wonder gold prices are soaring!

If ever proof of the incompetence of modern economists and the destructive forces that they unleash on an economy were needed, look no further than the idiocy of promoting “growth” in GDP by deficit spending. The error comes from confusing an increase in the quantity of credit in the economy directed by the state with the economic progress endemic to unfettered free markets. All economic history and experience scream at us that minimal government and zero economic intervention are the keys to economic success. And the greater the state’s intervention and control, the worse the outcome.

However, the state controls the statistics and rarely is this more disastrous in its consequences than a government expansion of credit by running budget deficits. To illustrate the point, let me pose a question: how does the government promote growth? Answer: by running a large budget deficit. Now another question: how do you destroy an economy? Answer: by running a large budget deficit.