Excellent article Joel. Government "contribution" to GDP is a joke. It should be considered that the GDP gained from government spending has actually been negative and that should be a lesson to all the American people. Government is a cost not a growth of GDP. AND those in the stock market trying to gain savings should be aware that government expenditures have not been bringing greater growth to the economy, hence the reason for the current downtrend in stocks i.e. reality strikes every once in a while despite Wall Street propaganda campaigns and CFPlanners and that entire scheme.
As a friend who teaches the dismal science of Economics would say to his class as an example: "If the US were to produce missiles for Ukraine that would (hopefully) find their destination in Russia, you would have a net increase in GDP due to the manufacture of the munitions, followed by another net increase as those weapons are exported. Therefore, war is always a benefit to the economy!"
His example would demonstrate the upside-down nature of modern Economics, and show the uselessness of believing in government statistics.
Joel, I like your explanation of GDP, and I like what the commenters expressed.I will only add what President Milei said at the Davos Summit this year ( i believe it was and not an exact quote)" You and your governments are the problem". Thanks.
A minor point. “The Economy” is certainly not an actual thing per se, but I’m not sure it’s a metaphor in that it’s not being compared with another seemingly dissimilar thing (ie life is a box of chocolates). I believe it would more accurately be described as a “hypothetical construct”.
One of our only hopes is that the common prole will have the lying blinders government put over their eyes, all while they stole well over $76.5t from them, ripped off. Imagine how the prole will feel when the IRS assesses him $250,000, his share of the money they stole from him.
Another great article. Really refreshing to hear truth rather than what the government wants us to hear and believe. Helps me (us) to understand issues more clearly. Thanks Joel.
GDP should equal goods and services provided by the private sector.
Government expenditures should be a separate category listed as a percentage of GDP.
We are paying government to lye to us, and then add the cost of lying to us to our GDP. You don’t have to wonder very long to see where this is headed.
Excellent article Joel. Government "contribution" to GDP is a joke. It should be considered that the GDP gained from government spending has actually been negative and that should be a lesson to all the American people. Government is a cost not a growth of GDP. AND those in the stock market trying to gain savings should be aware that government expenditures have not been bringing greater growth to the economy, hence the reason for the current downtrend in stocks i.e. reality strikes every once in a while despite Wall Street propaganda campaigns and CFPlanners and that entire scheme.
As a friend who teaches the dismal science of Economics would say to his class as an example: "If the US were to produce missiles for Ukraine that would (hopefully) find their destination in Russia, you would have a net increase in GDP due to the manufacture of the munitions, followed by another net increase as those weapons are exported. Therefore, war is always a benefit to the economy!"
His example would demonstrate the upside-down nature of modern Economics, and show the uselessness of believing in government statistics.
Excellent observation. One for a future Note. Cheers!
GDP - Gross Domestic Phantasy
Might have to "borrow" that one...
Joel, I like your explanation of GDP, and I like what the commenters expressed.I will only add what President Milei said at the Davos Summit this year ( i believe it was and not an exact quote)" You and your governments are the problem". Thanks.
Since governments consume wealth -- they don't produce it -- then Gross Domestic Product can only be what the private sector makes and sells
Another great article Joel.
A minor point. “The Economy” is certainly not an actual thing per se, but I’m not sure it’s a metaphor in that it’s not being compared with another seemingly dissimilar thing (ie life is a box of chocolates). I believe it would more accurately be described as a “hypothetical construct”.
One of our only hopes is that the common prole will have the lying blinders government put over their eyes, all while they stole well over $76.5t from them, ripped off. Imagine how the prole will feel when the IRS assesses him $250,000, his share of the money they stole from him.
Another great article. Really refreshing to hear truth rather than what the government wants us to hear and believe. Helps me (us) to understand issues more clearly. Thanks Joel.
Thank YOU, good sir! Just trying to figure out way through here. “Paso a paso ” as they say down this way…
GDP should equal goods and services provided by the private sector.
Government expenditures should be a separate category listed as a percentage of GDP.
We are paying government to lye to us, and then add the cost of lying to us to our GDP. You don’t have to wonder very long to see where this is headed.
Eventually, Revelation 13. But most people do not see that yet.