Thursday, July 10, 2014

America Refuses To Increase It's GDP.

       We Americans have a lot to learn about economics. We're way behind the Europeans in this area. They are in the process of increasing their various GDPs, that is, Gross Domestic Product which then will improve their ratio of productivity to debt. Why is this important? Because if your ratio of productivity (income) to debt is low, meaning you have too much debt for the income you have, it will severely limit your ability to borrow.
       So how is Europe increasing their income? Have they suddenly figured out how to sell more product to other countries? Actually, the European Union has determined that it's member countries should measure all aspects of their economies. Why weren't they doing that in the first place ? Actually European countries nor America were measuring ALL of it's income producing activities.
       So from now on, each European country will estimate the incomes and profits of their individual black markets and Sex trades. So from now on, Spain will try to figure out how much a prostitute charges, her overhead and profit and multiply that number by the number of registered prostitutes in the country and add that number to it's GDP. The increase could be staggering in some countries.
       When it comes to prostitutes and brothels, those overhead numbers could include everything from electric bills and property taxes to bedding and birth control. Even advertising might be considered. Although word of mouth might cut down on the ad bills. Still, the profit (GDP) will be staggering. So now while some of these countries have poor GDP to debt ratios, they will soon be in far better condition to get lower interest rates on future loans.
       America is far behind on this issue and will suffer as a result of our draconian system of making this oldest of professions an illegal enterprise and not registering them and taxing them and considering them in our own GDP projections, to improve our financial picture.

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