Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (112195)	3/15/2008 12:03:22 PM
From: Skeeter Bug	Respond to of 132070

i have no problem adjusting for inflation. again gdp was not designed to measure "ethereal "living standards," rather, it was designed to measure our nations ability to produce actual wealth in terms of actual dollars. "living standards" should correlate directly to the dollars. it has been bastardized. a wise man once said you know a tree by its fruits... the fruits of bastardizing the gdp numbers behind the ignorati's back was the biggest bubble in the history of the world. the tree stinks, as do the results. we haven't yet suffered the full after effects of that "new economy" lie... but it looks to be closing in on the horizon. one effect has been the pesoizing of the dollar. have fun on your next european vacation. heck, have fun your next canadian "vacation!" as for the faster computer, nobody types any faster than they did 10 years ago. if the faster computer speed doesn't produce anything that produces real dollars, it didn't benefit our wealth as a nation. if it did, it would eventually show up in the gdp numbers without being bastardized in. it makes no sense if gdp measures the actual wealth of a nation. gdp doesn't measure population increase. it doesn't even measure physical productivity, as the dram example below illustrates. yes, gdp should be adjusted for inflation (inflation minus everything that really went up in value!) to make meaningful comparisons to the past. you seem to think it measures the "feel good" value of the nation. i argue that isn't measurable and rife to be manipulated. it was, the new economy lie started, people started acting stupid... really stoopit, actually... and the bubble ran up and busted. directly related to the stock bubble is the housing bubble. now the buck has been pesoized and the worst is still on the horizon. improved physical productivity doesn't always equate to improved gdp. the dram guys are production increase gurus - as they lose money hand over fist (destroy gdp, not build it up) since they all end up over producing, driving down pricing and driving down real dollars, the kind that can buy stuff. you see, they have to ante up more than they bring in even though they increase productivity as much as 8 fold a year. it is a manufacturing marvel, but typically an economic disaster. gdp measures the economic disaster, not the manufacturing marvel. it was designed to, anyway, until it was bastardized. given this, i think we'll have to agree to disagree on this issue.