So, our GDP has reportedly fell by 6.1%, but the decline in imports has padded that number - because there are less imports to subtract.
By how much, you ask?
...the drop in imports contributed 6.05 percentage points to the GDP growth rate.And I'll borrow CJR's Ryan Chittum response to that (emphasis mine):
In other words when you subtract a negative, you get a positive. Without that false effect, the GDP report would have been an astonishing negative 12.2 percent. That’s a capital D depression right there, folks.
Holy crap.
2 comments:
But it's a good thing.
One number massage that I believe has been missed is the ownership equivalent rent number which also contributes to GDP. It is essentially a contribution equal to what you could rent your home for. So if you could rent your home for $18,000 per year it adds that much to the Consumption part of GDP. Apparently the gov thinks you can rent your home for more than just a year ago. This may simply be part of the mathematical standard applied or a lag in the number but it is increasing GDP at an opportune time.
Imagine how great our GDP would be if we didn't import approximately 1/4($50/bbl) to 1/2 of a trillion bucks worth of oil each year.
GDP growth by negativization.
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