Why is our Gross Domestic Product (GDP) smaller now than it was in 2007?

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Janey Profile
Janey answered
GDP will always be affected negatively by the following factors:
Reduced consumer spending.
Decrease in capital and government investment.
Government over-spending.
Reduced exports and increased imports.
Cuts or freezes on labour income ( salaries, benefits, pensions ).
thanked the writer.
Duane Bryant
Duane Bryant commented
Wow!!! Except for the government over-spending, Joseph isn't going to like your answer, it's too intelligent and realistic.
Duane Bryant
Duane Bryant commented
And you forgot to blame Obama!
Janey
Janey commented
That's taken as read about Obama !
Duane Bryant Profile
Duane Bryant answered
Money is like fertilizer, Joseph, it has to be spread on the ground to do any good, not put on the tree tops.  If you put it all in one pile it just burns the crop.  Money does not "trickle" down.  Common sense says that if it did, we wouldn't have any poor.  Common sense also says that if money trickled down, it wouldn't be concentrated at the top like it is now.  When the money gets back to the bottom it can start the growth cycle all over again and get sucked up to the top and the GDP will increase.  (I'm sorry Joseph, did the words "common sense" confuse you?)

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