{"id":1988033,"date":"2023-08-01T17:19:01","date_gmt":"2023-08-01T21:19:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gdp-is-a-bad-way-to-measure-the-economys-health-heres-a-better-way\/"},"modified":"2023-08-01T17:23:01","modified_gmt":"2023-08-01T21:23:01","slug":"gdp-is-a-bad-way-to-measure-the-economys-health-heres-a-better-way","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gdp-is-a-bad-way-to-measure-the-economys-health-heres-a-better-way\/","title":{"rendered":"GDP is an inadequate measure of economic health. Here&#8217;s a superior alternative."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgdp-is-a-bad-way-to-measure-the-economys-health-heres-a-better-way%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1988033&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Why GDP is a Misleading Statistic for Measuring Economic Strength<\/h2>\n<p>People supporting \u2062Joe Biden were excited \u200bthat the GDP for the second quarter came in higher than expected, at 2.4%. But here\u2019s the problem:\u200d GDP is a bad stat.<\/p>\n<blockquote>\n<p>The \u200breason \u200cit\u2019s\u200b a bad stat \u2063is that it measures the amount of user consumption. You pay a\u200c price at the store to buy a product; that goes\u2062 into GDP. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/iranian-dissidents-claim-biden-state-dept-hire-is-pro-regime-advocate\/\" title=\"Iranian Dissidents Claim Biden State Dept Hire is Pro-Regime Advocate\">government spends<\/a> a truckload of money; \u200cthat goes into \u200cGDP.<\/p>\n<\/blockquote>\n<p>If you buy a bunch of hamburgers, the economy \u200cis doing well, according to GDP.\u200c If you buy\u2064 fewer hamburgers,\u2064 the economy is\u200d doing poorly. If the government spends\u200d unprecedented amounts of\u2062 money, that means the economy is doing \u2063well because it gets counted in the GDP.<\/p>\n<blockquote>\n<p>But \u2062GDP \u2062is a Keynesian\u200c model of how the economy works. It assumes \u200bthat the more consumption there is,\u200c the better the economy is doing. In\u200b this view, government spending\u2064 supposedly drives the economy rather than business investment, technology, and entrepreneurship.<\/p>\n<\/blockquote>\n<h3>A Better Statistic: Gross Output<\/h3>\n<p>A better statistic to measure the economy \u200bis gross output, which measures <em>the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/here-are-all-the-green-new-deal-handouts-democrats-wedged-into-their-3-5-trillion-budget\/\" title=\"Here Are All The Green New Deal Handouts Democrats Wedged Into Their .5 Trillion Budget\">production side<\/a> of the economy<\/em> by measuring the\u200d amount of business \u2063investment we make.<\/p>\n<p>Instead of looking at the product you buy at the store, gross output looks at the products purchased \u2064all the way along the chain. If you\u2019re buying\u2062 a chair, \u2063it looks at who paid\u200c for the wood, who paid for them to be turned into planks of wood,\u200d who paid for the screws and the planks and \u200dput them\u2062 together, and who paid for the \u200dvarnish.<\/p>\n<blockquote>\n<p>Research published in 1990 shows\u200c gross output does a better job of \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gdp-is-a-bad-way-to-measure-the-economys-health-heres-a-better-way\/\" title=\"GDP is an inadequate measure of economic health. Here's a superior alternative.\">measuring total economic activity<\/a> than GDP. Government\u200c spending is <em>not<\/em> a giant chunk of gross\u2062 output; it <em>is<\/em> a \u2063giant chunk of\u2063 GDP.<\/p>\n<\/blockquote>\n<p>The Keynesian demand-siders suggest that because you spend money, someone makes a product for\u2063 you. Supply-siders say that the reality\u200d is effectively the reverse: entrepreneurs generate better innovative products and that makes people want to buy them.<\/p>\n<p>The supply-side economics perspective is\u200c more accurate and it supports a free market view of the economy \u200c\u2014 that \u200cwhen people are allowed\u200d to \u200bkeep their own \u200bmoney, they produce new and \u200cbetter services.<\/p>\n<p>What a \u200dconsumer-based economy cannot do is \u2063create new \u2063products. It \u200dis\u200c the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fmr-white-house-economic-adviser-kudlow-slams-sen-warrens-wealth-tax\/\" title=\"Fmr. White House economic adviser Kudlow slams Sen. Warren\u2019s wealth tax\">supply-sider<\/a> who creates new product.<\/p>\n<p>This\u200b is why you see a gap between how Democrats talk about the economy and how Republicans talk about the\u200c economy.<\/p>\n<p>Conservatives talk about the value of the entrepreneur.\u200c You see a product on \u200cthe shelf\u2063 and then you want\u200d to buy\u2062 it. Who made\u2062 that product? It wasn\u2019t you. \u200dLeftists, on the other hand, push the idea\u200d that it\u2019s somehow the reverse: consumers \u2063magically\u200c create the products through their unrealized demand.<\/p>\n<p>GDP tends to measure\u200d economic strength\u200b by who\u2019s buying the phone, as opposed to measuring economic strength by who <em>invested<\/em> in the phone, who\u2019s <em>putting money<\/em> into the phone,\u2064 who\u2019s <em>creating<\/em> \u2064 the phone.<\/p>\n<h3>Why Gross Output Matters<\/h3>\n<p>Here\u2019s why this is important.<\/p>\n<p>When you look at\u200b GDP right now, the \u2063economy\u2019s\u200b going well. But \u200bif \u200byou look \u2063at gross output, it\u2019s \u2064not. Business \u2062spending has dropped 9%\u200d in real \u200cterms over the past two quarters.<\/p>\n<p>So when people \u2062give you\u200b happy talk about the economy and cite GDP, check the gross output number.<\/p>\n<p><a href=\"https:\/\/onelink.to\/dwapp\" target=\"_blank\" rel=\"noopener\"><strong>CLICK HERE TO\u2062 GET THE DAILY WIRE \u2062APP<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>purchase contributes to GDP. However, GDP fails to consider factors like income inequality, environmental impact, and overall well-being. Relying solely on GDP to gauge economic success is shortsighted. We need a more comprehensive measure that reflects the true state of our society and prioritizes sustainable growth for all.<\/p>\n","protected":false},"author":161,"featured_media":1988034,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-1988033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1988033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/161"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1988033"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1988033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1988034"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1988033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1988033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1988033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}