Tuesday, July 9, 2013

Adding to the Zero Sum

Zero sum seems to be from the ancient world where no wealth was created, only stolen. So wealth moved from farmer to marauder to infantry to royalty. Nothing was created until capitalism. Or so it appears.

It is uncertain how government stimulus fits in the zero sum world.  Stimulus somehow is creative in itself; how this happens in a zero-sum world is not actually explained. Then again, most of us have not had the advantage of studying at the side of a Master of Entrails.

So stimulus can add to the zero sum pot. And maybe we need it because we need to cut the health care percentage of GDP from 18% to the European 9.5%. So with declining employment and stagnant business and the apparent philosophy that there is only so much to go around, the nation has decided to cut the huge health care component of its GDP in half. Will that decrease GDP by 9%? Will that be good?

Maybe, since this is zero sum economy, cutting health care will automatically stimulate a 9% of growth somewhere else. And stimulus money will be there. A gap will be created that will automatically be filled. There is an upside to the zero sum straitjacket.

That must be it.

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