Gerstner argues cutting $2 trillion in one year would create negative 7% GDP and trigger recession.
“The problem is every $300,000,000,000 you cut is a 1% headwind to GDP. So if you cut $2,000,000,000,000 in a single year, you have negative 7% GDP, right?”
Gerstner says GDP was flat for 1800 years then went parabolic after 1800.
“Eighteen hundred years, okay? Almost zero growth in GDP. And then just after the year 1800, you have this parabolic move in global GDP.”
Gerstner says US GDP per capita is 100x Nicaragua's today versus equal 100 years ago.
“The today, the GDP per capita of The United States to Nicaragua is a 100 x. Why? Right? We're living at a time where I think there's a lot of controversy about capitalism.”