GDP does not include capital gains as accrued or realized. The boost to deficit reduction from revenues comes from higher than expected wages and salaries. This excess is still largely unexplained by the revenue wonks.
GDP does include corporate profits. I don't know if these are supposed to be 'fictitious' too. But in any case send me any fictitious capital you want to get rid of.
>
> 6. Since the govt is only to trying to supplement, not supplant, private
> intiative, it can't offer wages which would motivate workers to leave the
> private sector, bid wages up, compound profitability difficulties there,
> and thus reduce private initiative. In order not to set this chain off,
> mustn't the govt thus offer low to slave wages in its employment
> generating programs? If we look closely at FDR's progams, isn't that what
> we find? . . .
On average public sector jobs pay more than private sector, though this premium reduces drastically if one compares similar jobs, rather than glossing over the difference between police officers and retail clerks. In general, government pay is competitive without being destabilizing. An exception is welfare related programs, where the pay is below standard for either public or private jobs. Another is prison based work. These jobs are very much the exception as far as the public sector goes.
MBS