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To: central_va

I share your concern about deficit spending, but I’m not familiar with it being included in any measures of GDP.


7 posted on 01/12/2013 5:22:51 AM PST by 9YearLurker
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To: 9YearLurker
GDP includes government spending!

"GDP is calculated by adding consumption plus government expenditures plus investments plus exports minus imports. Consumption is personal consumption that includes durable goods (durable goods are goods that are expected to last more than three years), non-durable goods (such as food and clothing) and services. Government expenditures include things like defense and road construction. Investment spending includes plants and equipment, residential homes and business inventory. Finally, subtract imports from exports to get the net exports."

Link here

11 posted on 01/12/2013 5:48:49 AM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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To: 9YearLurker
Gross Domestic Product is calculated in the following way

GDP = C + I + G + (EX - IM)

where

C = private consumption

I = private investment

G = government expenditure

EX = exports of goods and services

IM = imports of goods and services

Link here.

13 posted on 01/12/2013 5:54:07 AM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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