Monday, December 13, 2010
The outrageous and misguided views that people buy into
Certain commentators are running around saying things like, “The US economy (GDP) is a ‘phony’ economy because all we really measure is what we consume.”
That’s right; GDP measures what we consume; but everything that is consumed is also produced. Therefore, consumption and production are one in the same, just as is income and consumption or, income and product.
However, if you said that to those commentators they’d say, “Yes but, the United States doesm't produce anything.”
Another completely ridiculous statement.
When GDP is calculated imports are SUBTRACTED OUT OF THE TOTAL because we are measuring gross DOMESTIC product! And even with imports subtracted the number that is left is $14.8 Trillion! That’s not only a very big number, it's also everything that is consumed (AND PRODUCED) domestically, as in Gross DOMESTIC Product or.
The people who make these crazy statements are people who aren’t interested in the truth. They are people who don’t want YOU to know the truth either. They only want to continue spewing their misguided ideology and dogma.