US Admits It "Found A Problem" In Calculation Of GDP

US Admits It "Found A Problem" In Calculation Of GDP

From zerohedge.com

For years we have complained against both the BLS' and the BEA's comical seasonal adjustments, which "serve" just one purpose: to goalseek the data to a desired, politically-mandated outcome, and which culminated last May when the Department of Commerce announced it would seasonally adjust last year's woeful Q1 GDP data not once but twice in order to get a better result. Now, it appears that there indeed was a problem: government statisticians announced that they have found "evidence that efforts to adjust the country's measure of economic growth for seasonal fluctuations have not been fully successful." ... (full story)

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Jul 30, 2016 11:18am — Edited

You are NOT wrong in what you are saying. And following this line of argument, this is also true:

1 Curing cancer once and for all is TERRIBLE for GDP. The cost of providing useless solutions to ease the eventual death of patients costs MUCH more than a drug/cure that leads to another 40 years or more of healthy living; and so this extra cost of "health care" adds to the measure of GDP.

2 Traffic accidents are GREAT for GDP, because of the medical treatment of the mangled humans, and the repairs to motor vehicles all contributing to the measure of GDP.

3 WAR, America's good old favorite GDP growth mechanism is FANTASTIC for GDP; despite the MILLIONS of people the USA has slaughtered along the way.

Economics is SUPPOSED to be a science; but actually it is just a rhetoric. It is just the TALK of educated fools who bullshit gullible fools.

Economics has a LONG way to go before it has any solid foundation in FACT. It doesn't even rate as a pseudo science.

Economists are stupid people trying to sound smart, and they are believed by the stupid who cannot even spell "smart".

Quoting OZTrader22

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Its crazy that countries use gdp to measure performance.
1) It's geographical, so if a global company posts giant earnings in that country (like tech companies are doing in Ireland which made Irelands GDP increase 26% even though they pay next to no tax there and their employees are mainly in other countries)this counts to gdp because they report all of their global earnings in that country (usually for tax saving purposes.
2) If the government spends 400 billion on fighter jets (raising money for them from debt) this also counts to gdp.
3)...

Ignored

golfking

Jul 29, 2016 10:53am

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Quoting Guest

Disliked

I can give them my calculator lol lol

Ignored

... good idea ... lol

... but you need to teach them how to use it too ... lol

... cheating and manipulating is not easy at all ...

golfking

Jul 30, 2016 8:19am

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Quoting OZTrader22

Disliked

Its crazy that countries use gdp to measure performance.
1) It's geographical, so if a global company posts giant earnings in that country (like tech companies are doing in Ireland which made Irelands GDP increase 26% even though they pay next to no tax there and their employees are mainly in other countries)this counts to gdp because they report all of their global earnings in that country (usually for tax saving purposes.
2) If the government spends 400 billion on fighter jets (raising money for them from debt) this also counts to gdp.
3)...

Ignored

... I don't think at all that global companies with huge profits declare them anywhere in Europe or in the US. Facebook, eBay, Twitter, Amazon, Google and more pay less taxes than a small local retailer.

OZTrader22

Jul 30, 2016 7:52am

Permalink

Its crazy that countries use gdp to measure performance.
1) It's geographical, so if a global company posts giant earnings in that country (like tech companies are doing in Ireland which made Irelands GDP increase 26% even though they pay next to no tax there and their employees are mainly in other countries)this counts to gdp because they report all of their global earnings in that country (usually for tax saving purposes.
2) If the government spends 400 billion on fighter jets (raising money for them from debt) this also counts to gdp.
3) In say a country like China, they build 2 airports. Both count toward gdp of course. But...... One airport takes 2 flights a day and the other takes 70 flights. The former obviously is not productive and is actually a drag as it performs negatively over its life. Yet it counts straight onto GDP and people from around the world clap their hands and rejoice.
4) It doesn't take into account population growth as this may be the reason for increase in gdp. Atleast use gdp per capita which shows a lot of countries as already in decline or flat.