If you have a private firm and you spend a ton of money to pay employees, but what you produce is a flop, there will be no value to GDP. But government spending all gets counted as contributing to economic growth. That's why in the early days of creating these measurements, some people didn't want to count government spending.

You have to have your wallet for security reasons. I'm the governor. And I had to have money. I had to buy something to eat. You have to have identification.

If you start free trade with a Communist country, allow them to develop their own businesses, they don't remain communistic. They become a free society when they're able to make money themselves, and we increase trade with them and allow them to really produce products.

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