Posted on 01/31/2014 7:14:17 AM PST by SeekAndFind
...well, there you have it.
I don`t think you get it.
It`s irrelevant if past GDP is revised up since we know what the old standard was as in core GDP.
In Obamanomics 101 we now include Imputations,redirections, R&D,etc. R&D counted before as simply final product sales, now it`s double counted. Imputation/redirections are pure works of fiction.
http://www.bea.gov/faq/?faq_id=488
No. You don’t get it. These types of changes have been done for decades. It’s not exclusive to Obama.
How many COMPREHENSIVE revisions to NIPA and the SNA has BEA instituted since 1947.
Never mind, I trust Peter Schiff, FT, The Economist a little more than you,
“ It’s going to look like the economy is getting bigger even though it isn’t. Our GDP is one big lie.”
Not only a lie but it serves the purpose of making debt to GDP ratios look smaller so Statist can spend and borrow more.
PS:
IF comprehensive changes to the NIPA and the SNA “been done for decades” then there would have been absolutely no need to revise the data back to 1929 now would there ?
You`re excused. Run along sport.
One of the real human tragedies is the marketing by the Left of the false notion that capital and labor are at odds. Labor cannot function without capital. Capital is the lifeblood of endeavor.
Can you imagine a carpenter without a hammer? Where would he work without money to pay for the work? Both the hammer and the money are capital. You cannot work without it.
How’s the velocity of money, lately?
That down pointing tail is the key to the economic future. I’d like to see it at a monthly scale for the last 12 months. When that turns up...
When they added government spending to the GDP, any net increase in that spending is a rise in GDP.
The fact that that money they are spending is a net drain on real growth in GDP never crosses their minds. Or if it does, they bury it deep and smile big...
That’s what I’m talking about! Thanks. Ping me when it turns upward.
Did you get a chance to listen to Fisher’s recent Econtalk?
Here’s a counterpoint. http://thefaintofheart.wordpress.com/2014/02/02/fomcer-richard-inspector-clouseau-fisher-and-his-excellent-rare-book-price-clue-to-proper-monetary-policy/
Where do you fall?
It's an awfully short timescale and hard to get perspective.
I have not. Sorry my company just released earnings yesterday and I have been swamped with that process. I will take a listen. Thanks for the link.
How about this..... (for part of the growth)
If we assume the economy has plateaued and companies have adapted and learned to operate at the new level, It is not unreasonable to assume that managers can tinker with what they have and develop operating efficiencies.
That tinkering results in positive change at the plateaued level. More output at the current or slightly reduced employment level is growth.
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