This government "feel good" economic reporting started, no surprise, in the Clinton years. Focus groups liked good news.
This is macro economic stuff, folks. Those of you getting off on schadenfreude at the micrco economic misery of your fellow citizens keep on keepin' on. Nothing for you here.
Good post, Paul Ross. And thank you for "Hypothetical Hocus-Pocus." I've been asking for feedback on hedonics for almost a year. I thought it was someting I saw in a Monty Python movie.
The GDP is bumped by an amount of dollars "into a higher number reflecting the hypothetical benefits of soaring computer power." Technology inflation, some call it.
Thus according to your reply a 1998 Clinton calendar quarter GDP increase of $114.2 billion (nominal value, right?) becomes $127 billion (Monty Python value).
It lives on today. In fact, this "increase in computer power that businesses are getting for their money" inflates the manufacturing portion of the GDP and an article by Mr. Reynolds of CATO (I believe) a couple of years ago used the result to "prove" that manufacturing has remained unchanged as a portion of the GDP for decades. Thus refuting that any significant offshoring was taking place. Limbaugh, et al. picked it up and amplified the crowing coast-to-coast.
Did they really take housing, energy and food out of the "basket of goods" used to measure inflation? If so what the hell is left? What the helll is the point of measuring "inflation?"
Well, I'm going to copy your replay and save it for later. Thanks again for the work!