{"id":1962,"date":"2014-11-23T09:31:08","date_gmt":"2014-11-23T14:31:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1962"},"modified":"2014-11-23T09:31:08","modified_gmt":"2014-11-23T14:31:08","slug":"gdp-headed-to-permanent-contraction-by-2023-heres-why-first-rebuttal","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1962","title":{"rendered":"GDP Headed to Permanent Contraction by 2023 \u2013 Here\u2019s Why | First Rebuttal"},"content":{"rendered":"<p><a href=\"http:\/\/www.firstrebuttal.com\/2014\/11\/22\/gdp-headed-to-permanent-contraction-by-2023-heres-why\/\">GDP Headed to Permanent Contraction by 2023 \u2013 Here\u2019s Why | First Rebuttal<\/a>.<\/p>\n<p style=\"box-sizing: border-box; margin: 0px 0px 24px 0px;\">November 18, 2014\u2014I\u2019d like to carry on the theme from my recent article \u201c<a style=\"box-sizing: border-box; color: #bc360a; text-decoration: none;\" href=\"http:\/\/www.zerohedge.com\/news\/2014-11-04\/interest-rates-cannot-rise-heres-why\" target=\"_blank\"><span style=\"box-sizing: border-box; color: #0066cc;\">Interest Rates Cannot Rise \u2013 Here\u2019s Why<\/span><\/a>\u201d that garnered some discussion after being posted on Zerohedge. I\u2019m going to show that GDP is also in a trap of decelerating growth although I will state that unlike interest rates the prognosis is treatable for GDP.<\/p>\n<p style=\"box-sizing: border-box; margin: 0px 0px 24px 0px;\">However, it will require the Fed to admit its failure and for the government to pull its Keynesian head out of its aristocratic ass. Specifically, the Fed needs to end its market manipulation and corporate tax rates need to come down significantly in addition to offering incentives for hiring and fixed capital investment here in the US.<\/p>\n<p style=\"box-sizing: border-box; margin: 0px 0px 24px 0px;\">Let me start by showing that GDP growth has been decelerating for as long as many of us have been alive. If you can remember back to your calculus classes you\u2019d see deceleration of GDP growth as the second derivative of the GDP function. Let\u2019s see what this looks like in practice on the following chart (the data was exported from St. Louis Fed\u2019s Fred in order to show the trend line).<\/p>\n<p style=\"box-sizing: border-box; margin: 0px 0px 24px 0px;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GDP Headed to Permanent Contraction by 2023 \u2013 Here\u2019s Why | First Rebuttal. November 18, 2014\u2014I\u2019d like to carry on the theme from my recent article \u201cInterest Rates Cannot Rise \u2013 Here\u2019s Why\u201d that garnered some discussion after being posted on Zerohedge. I\u2019m going to show that GDP is also in a trap of decelerating [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,305,353,1377,391],"class_list":["post-1962","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-federal-reserve","tag-gdp","tag-gdp-contraction","tag-growth"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1962"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1962\/revisions"}],"predecessor-version":[{"id":1963,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1962\/revisions\/1963"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}