Capital consumption in 2009 was 13.4% of GDP, vs. only 9.7% of GDP in 1966.
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Why delay near-term capital consumption if dollars invested and saved will, if lucky, come back reduced in value?
Both sides desire capital consumption over the very saving that provides credit to the businesses that would otherwise move the economy forward.
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As HR becomes more able to value human capital investments and include them in financial statements, human capital consumption behavior will become much more transparent.
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Pre-tax profits (with inventory and capital consumption adjustments) declined at a 9.2% annual rate in Q2 and are down 7% since last year, the worst since 2001.
Even for those deeply worried about old capital and weak consumption there are grounds for optimism.
Growth has been driven by capital formation, consumption and only marginally by net exports.
These capital investments make more consumption possible in the future which is, after all, why people choose to save.
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Best of all would be no taxes on corporations, capital, incomes or consumption.
Many Western firms are more interested in Asia's capital spending than its consumption, and here Asia is undoubtedly the giant.
In tandem, governments should switch the burden of taxation from consumption to capital by reducing value-added taxes and increasing taxes on capital and wealth.
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Defying the trend in the rest of the United States, Californians have kept their energy consumption per capital at about the same level since 1974, according to the Washington Post.
The path towards that awareness begins, again, with the virtuous circle that America has been enjoying during the past year: the way in which a strong economy has been further stimulated by share-price rises, through both consumption and capital investment, while a strong dollar (partly a result of foreign buying of American equities) has helped to curb inflation.
And because a sales tax is a consumption tax, more people will defer consumption and have capital to invest instead.
Wealth, or capital, is simply deferred consumption that is put to work.
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This not only reduces the creative potential to support economic development in the country, but accentuates capital flight and reduces domestic consumption.
Alt indicators at current prices, including changes in inventories and consumption of fixed capital, are valued at average prices of the accounting period.
The terms "gross" and "net" in this case show if this indicator includes or excludes consumption of fixed capital in the process of production.
But, as Capital Economics warns, this consumption boost could be short-lived.
At the national level the balance of primary incomes makes gross income, i.e. before deduction of consumption of fixed capital, equal to Gross National Income (GNI).
Higher taxes on capital gains and dividends, abstracting from issues of equity and fairness, reduce real economic growth, cause weaker consumption and decreases in business capital spending, reduce employment, and labor force growth, and help bring about less potential output.
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The deadweight cost of capital taxation is higher than that of consumption, property or income taxation.
Other forms of capital destruction, such as lending for consumption, are best discouraged.
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Specifically, Paulson wants to see stronger and more efficient capital markets in China, increased domestic consumption and more exports from the U.S. to China.
The future will be richer the less we place the tax burden upon capital and the more we place it on consumption and property.
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In Crash Proof , I talked about how our economy suffered from the co-morbid diseases of asset bubbles, excessive debt and consumption, and insufficient savings, capital investment, and production.
You will note that consumption taxes have lower deadweight costs than capital and corporation taxes.
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Does this increased level of capital spending by businesses represent an anticipation of higher consumption demand?
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Developing countries grew partly by trading with each other, but partly also by financing their consumption and investment with rich-country capital.
Unfortunately, he fails to see what should be strikingly obvious: capital formation must precede production, which then allows for consumption.
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