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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (516625)	12/28/2003 11:31:54 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 769667

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.