Wrong! GDP is the total of goods and services produced in a particular country. Goods produced in a foreign country are counted in the GDP of that specific country only. Goods produced in India by an American Co.(HP for example) are not counted in the GDP of the United States, but of India. Try a Google search. Very simple. Ken
Right! I think we all understand what the GDP is supposed to be but that doesn't mean what it IS.
Try a google search for the articles disputing this GDP. Or, even better, use your common sense. We had a 7% GDP one month, 8% the next and poor retail numbers and NO hiring. Make sense to you?
"GDP is meant to be a measure of stuff we produce in this country," he said. Of the latest quarterly GDP report, he added: "I don't believe it."
Leamer said he was at a loss to explain the surge in GDP, saying the component factors of economic growth do not add up.
"Since humans don't seem to be making all this stuff, you are probably thinking that it is being made by aliens from outer space working secretly in our factories during the graveyard shifts," he said in his forecast.
The report said the service sector did not explain the surge in economic activity either.
"If anything, the service sectors have shown abnormally weak growth throughout the 'recovery' and even more so in third quarter," the report said.
Asked in an interview if he could explain the paradox, Leamer said, "I don't yet understand it. The correlates of GDP growth are not there. Industrial production, employment, cargo growth are not there."
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