GDP Number Tells Us Little About Real Growth

AdvancingTime

Senior Member
Feb 8, 2015
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Years ago a Seinfeld episode was centered around the idea of producing a television show about nothing! Sadly, in many ways this is the direction America has moved towards when it comes to measuring our economic growth. We have allowed numbers that mean "nothing" to seep into how the gross domestic product (GDP) is calculated all in an effort to create the illusion of growth.

The first comprehensive set of measures of national income was developed by economist Simon Kuznets who in 1934 told the US Congress the formula was problematic. Bottom-line in the words of its creator, "The GDP framework is more or less an empty abstraction devoid of any link to the real world." More on just how misleading this number is in the article below.

http://brucewilds.blogspot.com/2015/05/gdp-number-is-master-illusion.html
 
Years ago a Seinfeld episode was centered around the idea of producing a television show about nothing! Sadly, in many ways this is the direction America has moved towards when it comes to measuring our economic growth. We have allowed numbers that mean "nothing" to seep into how the gross domestic product (GDP) is calculated all in an effort to create the illusion of growth.

The first comprehensive set of measures of national income was developed by economist Simon Kuznets who in 1934 told the US Congress the formula was problematic. Bottom-line in the words of its creator, "The GDP framework is more or less an empty abstraction devoid of any link to the real world." More on just how misleading this number is in the article below.

http://brucewilds.blogspot.com/2015/05/gdp-number-is-master-illusion.html
I absolutely agree. The GDP does NOT tell the real story of economic growth, the state of the economy, the jobs market, nor anything about the actual state of this nation. It's nothing more than a political football.
 
Years ago a Seinfeld episode was centered around the idea of producing a television show about nothing! Sadly, in many ways this is the direction America has moved towards when it comes to measuring our economic growth. We have allowed numbers that mean "nothing" to seep into how the gross domestic product (GDP) is calculated all in an effort to create the illusion of growth.

The first comprehensive set of measures of national income was developed by economist Simon Kuznets who in 1934 told the US Congress the formula was problematic. Bottom-line in the words of its creator, "The GDP framework is more or less an empty abstraction devoid of any link to the real world." More on just how misleading this number is in the article below.

http://brucewilds.blogspot.com/2015/05/gdp-number-is-master-illusion.html

Please explain what you link to in your own words.
 
Three criteria that reflect the standard of living for most Americans are: unemployment rate, jobs created per year, and median income adjusted for inflation.
 
I absolutely agree. The GDP does NOT tell the real story of economic growth, the state of the economy, the jobs market, nor anything about the actual state of this nation. It's nothing more than a political football.

Please explain how this is true.
 
I absolutely agree. The GDP does NOT tell the real story of economic growth, the state of the economy, the jobs market, nor anything about the actual state of this nation. It's nothing more than a political football.

Please explain how this is true.
Well, use common sense here. Does the GDP number say anything about consumer spending? Does the GDP number say anything about the health and stability of the retail market? Does the GDP number say anything about unemployment, poverty, homelessness, home ownership, tax revenue, the cost of living, the number of citizens receiving some form of government assistance, the amount of money the elderly have for food and medicines, part-time jobs, low-wage jobs, temporary jobs, debt, student loans, personal savings, the housing and construction industry, the cost of health care, the cost of higher education, transportation cost, the cost of utilities, or anything else that shows the health and stability of the over all economy?

The GDP ( Gross Domestic Product ) number shows product output, nothing more. The products manufactured, made, could be exported, produced with automation, stocked for replacement parts for the Department of Defense, war supplies, etc.. The GDP number does NOT indication full-time living wage self-supporting jobs, consumer spending, personal savings, industry health, less personal debt, a narrowing of the gap between real wages and the cost of living, less unemployment, less citizens living in poverty, nor any other indicator of the actual health and stability of the economy. It's basically the same as the stock market, which also is no indicator of the health and stability of the economy.

So, when the GDP number comes out for a quarter, what does it actually mean? It simply shows "product output", nothing more. EXAMPLE: If company XYZ produces 100,000,000 widgets in a quarter, using automation and advanced technology to produce them, and ships them to a foreign country, does that mean that our economy is booming, and on the up-swing? The GDP number will go up because of the high number of widgets produced ( product output ) ( GDP ), but what will it say about the health and stability of our economy? Do not gauge the health and stability of the economy on either the GDP number, or on what Wall Street is doing. Neither reflects the actual conditions on Main Street America.

The health and stability of the economy is based on consumer spending, personal debt, employment, the income to cost of living ratio, personal savings, home ownership, and tax revenue. The GDP number doesn't come close to telling the economic story on Main Street America. Again, it's just common sense.
 
You don't hear about the low Labor Market Participation Rate from this Administration

In 1977 the rate started at 61.6 and in November the rate increased to a high of 62.8.

In Jan. 2014 the rate was at 63.0 and in Dec. it was down to 62.7.

2015 Jan. the rate was 62.9 Feb. 62.8, Mar. 62.7, Apr. 62.8.

http://data.bls.gov/pdq/SurveyOutpu
 
Yes, GDP describes all about consumer spending and business investments so it’s an important factor considered in economic analysis. But we also cannot overlook major issues line interest rates, debt and unemployment rate.
 
If you had the option to live in a high GDP country or a low GDP country which would you pick??????????

USA $53,000, Uganda $657
Yes, GDP describes all about consumer spending and business investments so it’s an important factor considered in economic analysis. But we also cannot overlook major issues line interest rates, debt and unemployment rate.
 
Years ago a Seinfeld episode was centered around the idea of producing a television show about nothing! Sadly, in many ways this is the direction America has moved towards when it comes to measuring our economic growth. We have allowed numbers that mean "nothing" to seep into how the gross domestic product (GDP) is calculated all in an effort to create the illusion of growth.

The first comprehensive set of measures of national income was developed by economist Simon Kuznets who in 1934 told the US Congress the formula was problematic. Bottom-line in the words of its creator, "The GDP framework is more or less an empty abstraction devoid of any link to the real world." More on just how misleading this number is in the article below.

http://brucewilds.blogspot.com/2015/05/gdp-number-is-master-illusion.html

GDP is just one indicator of little interest. It only becomes intersting when you consider the following :
A) GDP per capita adjusted by the consumer price index ( just to discard inflation and population growth from the GDP ).
B) Gini index
C) Median Income
D) Median Income to GDP Ratio
E) Human development index.
 
If you had the option to live in a high GDP country or a low GDP country which would you pick??????????

USA $53,000, Uganda $657
As allways Ed 1,000,000,000,000% conservative stupidity !!!!!
India GDP 2,049,501 or Australia 1,444,189 or New Zeland 198,118.
You of course , would probably pick India !!!
 
As allways Ed 1,000,000,000,000% conservative stupidity !!!!!
India GDP 2,049,501 or Australia 1,444,189 or New Zeland 198,118.
You of course , would probably pick India !!!

dear, thats exactly why I listed GDP in USA and Uganda on per capita basis.

Lucky you, as a typical liberal you're too slow to know how slow you are.
 

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