[quote=moneymaker]It seems to me there are 2 options for the government for stimulus, lower rates or create jobs. Ok already tried to lower rates, now can’t go any lower. So time to create jobs soon, 2 ways to do that also. Hire more government workers/create infrastructure jobs or the Trump strategy (deport the illegals). Neither of these strategies increases GDP so will also ultimately fail. The lowering of rates was suppose to increase jobs by getting businesses to invest with new start ups and such. Problem is most investment has been overseas. Maybe the China problem will stop this, but I doubt it. Ultimately China will start an economic war by dumping dollars and the US will respond with protectionism. Just my 2¢[/quote]
Government spending can indeed increase GDP.
“Gross domestic product can be calculated using the following formula:
GDP = C + G + I + NX
where
“C” is equal to all private consumption, or consumer spending, in a nation’s economy, “G” is the sum of government spending, “I” is the sum of all the country’s businesses spending on capital and “NX” is the nation’s total net exports, calculated as total exports minus total imports (NX = Exports – Imports).”
