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by chrisco255 2447 days ago
On point 1) you're incorrect. Services make up nearly 80% of the U.S. economy. Our economic growth in recent decades has not been due to an increase of stuff.

https://2016.trade.gov/publications/ita-newsletter/1010/serv...

I work for a multi-billion dollar company and we just sell ones and zeroes.

1 comments

I see you took my use of the word stuff quite literally. Services are stuff too, and get included in M1 and consumer spending. I'm not wrong.
You mentioned harvesting metals out of meteors so I took you at face value on that word. Point is that it's more about efficient use of labor and capital. And we still have a long way to go in realms of automation technology, energy tech, virtual reality, finance, biotech, medicine, space tech and countless products and services that will continue to grow the economy for decades if not centuries to come. That being said, a recession will happen at some point. Difficult to speculate as to when, my guess is that if we are, it won't be a deep one.

M1 money supply is not typically used as a measure of economic growth. Money supply can increase while the economy is tanking (see Venezuela). Real gdp or other similar figures are typically used.

M1 is for measuring velocity, not growth. Velocity of money tends to better model the health of an economy than does GDP.