Debt spending and war spending are counted as positives in GDP.
We've been over this, AmSpit. GDP doesn't measure balance sheets - it measures spending on goods and services. It's really very simple. GDP = personal consumption expenditures ("C") + domestic private investment ("I") + government spending ("G") + exports ("EX") - imports ("IM"). THIS, AmSpit, is Econ 101 stuff. Do you see a variable for debt in there?
BTW, C rose last quarter by 6.9% (real $), I rose by 14.8%, and EX rose by 9.9%. G, OTOH, only rose by 1.8% and IM only rose 0.8%. And government spending contributed only .34% of the 8.2% real growth in GDP, a rather minor contributor regardless of how it was financed. Breaking it down further, FEDERAL government spending contributed only .09% and within that, defense spending was actually a .06% drag on the economy - i.e. it went down.
Got that, AmSpit? "Debt spending", "war spending" or just plain ol' spending - the money spent by the federal government contributed almost nothing to economic growth in Q3.
The 8.2% growth in the quarter was almost entirely due to private consumption and investment spending and growth in exports.
bea.doc.gov
Try a new lie, AmSpit. |
