Economic Model Summary

What was learned from the economic models posted over the past several months?

• If the federal government raises taxes and receives more tax revenue it spends more money because the debt, budget and government spending continue to increase.

• Maximizing consumer spending does just as much to reduce the poverty level as increased government spending and debt.

• Government Social Benefits needs to be minimized. This economic parameter had the most significant negative impact on other economic parameters.

• Government budget deficits and debt need to be minimized. This economic parameter had the second most significant negative impact on other economic parameters.

• Population increases had little impact on economic parameters.

• State budget deficits and state social benefit payments had little overall impact on national economic parameters.

• Consumer spending needs to be maximized. This parameter had the most significant positive impact on other economic parameters.

• Personal income needs to be maximized. This parameter has the second most significant positive impact on other economic parameters.

• The trade deficit has a big impact on many economic indicators (some good and some bad).

• Economic parameters such as GDP, tax receipts, unemployment, inflation, and government spending had less of an impact on other economic parameters than one may suspect.

• Government spending is a leading cause for inflation and driving energy prices and healthcare costs higher.


These are just a few of the obvious observations. I will also post models in the future on other complex issues / problems including healthcare and climate change.


My Book: Is America Dying? (Amazon.com, Barnes and Noble)