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What Happens to GDP when you Remove Government Spending?

Guy, I don't know who taught you how business finances are run, but you need to get your money back. What I've learned being a small business owner is that when I put money back into my business, I don't use that money to buy a house - I use that money to buy equipment for my business. Because it is used for the business and not for my personal use, it is deducted from my taxable income from that business.

Not true. Equipment goes on a depreciation schedule. It is not deducted from your taxable income. You can take a deduction of (1/number of years of the depreciation schedule) as an expense for the first year and each succeeding year until the schedule is amortized. When the depreciation is fully amortized you will have deducted the full value of the equipment. But I can assure you that you were taxed all the way through for the unamortized amount of the original purchase cost each year. Have a chat with your accountant. He or she will explain it to you.
 
Not true. Equipment goes on a depreciation schedule. It is not deducted from your taxable income. You can take a deduction of (1/number of years of the depreciation schedule) as an expense for the first year and each succeeding year until the schedule is amortized. When the depreciation is fully amortized you will have deducted the full value of the equipment. But I can assure you that you were taxed all the way through for the unamortized amount of the original purchase cost each year. Have a chat with your accountant. He or she will explain it to you.

But you still don't buy a house right away with the money that you put back into your business, which is what you implied in your earlier post.
 
I didn't say anything about buying a house. I only said that the business didn't buy the house. The house has nothing to do with business accounting unless it is owned by the business.
 
How is wage controls limited govt?

I am not for any wage controls, other than a minimum wage.. which serves as a buffer to prevent wage collapse during a cyclical economy. Completely unregulated.. the economy can collapse do to the irresponsibility of a few. As we have just seen.

The fact that I do see some regulation as necessary to protect against the irresponsibility of the few.. is the difference between a conservative republican and a libertarian.
 
I am not for any wage controls, other than a minimum wage.. which serves as a buffer to prevent wage collapse during a cyclical economy. Completely unregulated.. the economy can collapse do to the irresponsibility of a few. As we have just seen.

The fact that I do see some regulation as necessary to protect against the irresponsibility of the few.. is the difference between a conservative republican and a libertarian.

Minimum wage is wage controls. But ok, that clears it up then. Conservatives beleive in govt controlling the economy. Libertarians dont. Guess we'll have to disagree.
 
Minimum wage is wage controls. But ok, that clears it up then. Conservatives beleive in govt controlling the economy. Libertarians dont. Guess we'll have to disagree.

Actually.. yes... that's why we are considered conservative.. we believe in limited government... again as an example... a limited wage control.. such as minimum wage... but not full on wage controls.

Libertarians believe in laissez faire with no government control. Which to be honest, is that when it comes to business is extremely naïve and potentially very dangerous.

For example.. slavery. Slavery in America was not a government insititution. It was a result of private business activity. Under libertarian thought.. slavery should and would continue since it was private business and not government.

A conservative would understand that loss of freedom can come sources other than the government, and that some government regulation is necessary to prevent a majority from enslaving and or harming the freedoms of a minority.
 
Not true. Equipment goes on a depreciation schedule. It is not deducted from your taxable income. You can take a deduction of (1/number of years of the depreciation schedule) as an expense for the first year and each succeeding year until the schedule is amortized. When the depreciation is fully amortized you will have deducted the full value of the equipment. But I can assure you that you were taxed all the way through for the unamortized amount of the original purchase cost each year. Have a chat with your accountant. He or she will explain it to you.

Yep.. which means that I did not pay tax on that money..
 
Actually.. yes... that's why we are considered conservative.. we believe in limited government... again as an example... a limited wage control.. such as minimum wage... but not full on wage controls.

Libertarians believe in laissez faire with no government control. Which to be honest, is that when it comes to business is extremely naïve and potentially very dangerous.

For example.. slavery. Slavery in America was not a government insititution. It was a result of private business activity. Under libertarian thought.. slavery should and would continue since it was private business and not government.

A conservative would understand that loss of freedom can come sources other than the government, and that some government regulation is necessary to prevent a majority from enslaving and or harming the freedoms of a minority.

Rediculous on the face of it. Slavery is the opposite of liberty.
 
Rediculous on the face of it. Slavery is the opposite of liberty.

I agree.. but it was a result of free market principles and was only stopped when the government got involved in the Southern economy...

Or are you saying that libertarians also believe that the government should get involved in regulating an economy.....

Think about it.
 
Including government spending in GDP tends to skew things because a significant percentage of it is merely redistributive. Pretty much all of the Social Security spending is simply pulling money from pile "A" and dumping it into pile "B". What actually causes GDP to rise is the the sale of goods and services. The private sector is actually the driving force of GDP and when that sector is allowed to retain their resources they tend to produce and sell more "stuff".

That is considering if the government did not spend than the private sector would.... During a recession businesses and the average folk are spending less, therefore the government is stimulating by spending money we borrow from investors, so lets assume pile "A" would of sat in off shore bank account, and that pile "B" is being spent on stuff that benefits society.
 
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