Should a 10% GDP Stimulus reduce

[One_Life_To_Give]

the federal unemployment rate by 10% as well?

[Zynx]

1. GDP and unemployment have a relationship, but it definitely is not 1 to 1.

You can grow GDP by 2% a year and still see unemployment rise due to gains in productivity and growth of the labor force. You generally have to be growing by at least 3% per year to see unemployment fall.

[ixion]

2. A 10% of our GDP 'stimulus' created from thin air and borrowed money

only puts us deeper in the hole.

[Zynx]

3. I suppose WWII spending did absolutely nothing but crank debt up to 120% of GDP.

No positive effects or anything. I'll ignore that 150% increase in GDP.

[ixion]

4. the difference is this: back then we made things

we had a manufacturing base that drove that recovery. The service industry will most certainly not be able to perform this function, and we no longer have much of a manufacturing base here.

That said: if the money were spent on invigorating manufacturing -- if we went back to making things -- we would recover much better.

However, handing out more taxpayer dollars to inside players will not accomplish this, IMO.

[Zynx]

5. We have the world's highest industrial output by shear dollar volume.

We are the largest producers of capital equipment. If money is spent there that is very positive.