phantom GDP due to offshoring

[Truthmatters]

http://tinyurl.com/3brj6g

Very interesting article about how the Admin has been mismeasuring GDP by not taking into account the effects of offshoring.

Its a bit long but I sugest you read it all to understand fully.

 

[Truthmatters]

But the new numbers also require a reassessment of productivity and wages that could add fire to the national debate over the true performance of the economy in President Bush's second term. The official statistics show that productivity, or output per hour, grew at a 1.8% rate over the past three years. But taking the phantom GDP effect into account, the actual rate of productivity growth might be closer to 1.6%--about what it was in the 1980s.

 

[Toro]

That's very interesting.

But its not "the administration" measuring the GDP. This is a problem of statistical methodology.

 

[Truthmatters]

by whom?

 

[Toro]

The Bureau of Economic Analysis is a government agency independent from the administration.

It is not under political control.

 

[Truthmatters]

http://www.bls.gov/bls/blsorg.htm

check the vacancies in the posts

So are they as independent as say the GAO or the CBO?

 

[Toro]

I'm not sure.

What I know is that there isn't any political interference.

http://www.bea.gov/about/mission.htm

 

[Truthmatters]

there seems to be some key vacancies ad I cant find out how thy fill them or why they havent filled them.

They have not had a commissioner for a while I think.

Maybe someone is starving them.

The do appear to be independent but the DOJ was at one time also.

I get shit all the time when I quote things from the GOA or the CBO which are just as independent when people dont like the results.

 

[Toro]

Nonpolitical people tend to view the GAO and the CBO as generally independent and credible. The market and academics do so, as do I.

 

[RetiredGySgt]

http://www.bls.gov/bls/blsorg.htm

check the vacancies in the posts

So are they as independent as say the GAO or the CBO?

Explain again how POLITICAL appointments are Independent?

 

[Truthmatters]

When you appoint the head only you can effect a bit of a change but its NOT like a corporation where you can dictate the outcomes the entire body performs.

These entities have long term employees who cannot just be terminated at the whims of the head.

Maybe this is why the BEA head postition was never filled?

I cant seem to find how and who hires the position.

 

[RetiredGySgt]

When you appoint the head only you can effect a bit of a change but its NOT like a corporation where you can dictate the outcomes the entire body performs.

These entities have long term employees who cannot just be terminated at the whims of the head.

Maybe this is why the BEA head postition was never filled?

I cant seem to find how and who hires the position.

Did you even read your own link to the CBO? It is a lot more than just the HEAD that is appointed, it isd the head of every section in the CBO. And I am still waiting to hear why the HEAD was removed when the Dems took over Congress , something that has never happened before.

 

[Truthmatters]

The Director appoints all CBO staff, including the Deputy Director, and all appointments are based solely on professional competence, without regard to political affiliation. The compensation of the Director and the Deputy Director is set by law at levels tied to the annual rate of compensation of House and Senate officers. The Director determines the compensation of all other staff.


Do you really think they replace the entire staff of arround 250 everytime they change directors?

 

[Truthmatters]

CBO is composed primarily of economists and public policy analysts. About 70 percent of its professional staff hold advanced degrees in either economics or public policy.