GDP Revisions, Long-Lived TV Shows, Cat Videos, etc.

August 1st, 2013 at 12:37 pm

Dean Baker and I on the GDP revisions–what’s put in and what’s left out.

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2 comments in reply to "GDP Revisions, Long-Lived TV Shows, Cat Videos, etc."

  1. Luemas Rellok says:

    Still not understanding how this does not either double count development, or openly accede the existence of stupefying price failure in the market place. Anyone?

  2. readerOfTeaLeaves says:

    Great article!

    Particularly this, which IMVHO is way overdue:

    Research and development spending that was previously treated as an expense to business, the same as paper clips and electricity, will also now be treated as an investment with the potential to generate future income.

    But also for this:

    Still, as new sources of economic value emerge, it’s important to try to account for them, even if the accounting risks becoming more arbitrary as the measurement issues become more challenging. But it’s equally important to try to measure the value we’re destroying — to “net out” the environmental damage.

    As for how all this affects us ‘normal folks’, if GDP continues to be the basis for policy discussions and decisions, it’s critical to think more astutely about how to calculate that number.

    I hope Dr. B. and Dean Baker continue to highlight this topic, because from what I see at my local level, a lot of people still need to be educated about the implications.