Since GDP simply adds up all the borrowing and spending in an economy regardless of who did the borrowing and spending and for what purpose, it’s no shock that recent GDP numbers are higher than expected. Peter St. Onge notes that we are actually getting a whole lot less bang for every borrowed buck.
Fresh GDP numbers came in and it was a blowout.
The kind of blowout only $2.7 trillion of deficit can buy. While the real economy crumbles.
To see why, in the past 12 months the federal deficit increased by $1.3 trillion. Yet we only got half that in GDP. In other words,… pic.twitter.com/0YTtXvWRrO
— Peter St Onge, Ph.D. (@profstonge) January 26, 2024
Just think that it could be worse… such as investing ALL funds into Bitcoins.
That requires stable electricity and computers for everyone.
This scam is someone selling invisible coins that only the seller controls it’s value and periodically cashes out the suckers.
Government spending should never be considered anything but a negative when discussing the GDP.
It is really sad that bureaucrats and politicians have little to no understanding of economic indicators. When people go bankrupt, usually about one year before they go under, they are spending, spending, spending – trying to dig themselves out of debt in any way possible. Anyone/institution that will give them money they will take it and try to spend their way out of their money problems.
Same with these GDP numbers – unless you are looking at debt, deficit and productivity numbers, this GDP is only good on the surface. And governments are spending, spending, spending regardless of productivity.
Enjoy the decline.
Bang on.:-(
Same thing is happening in the US.
So you’re telling me Biden is lying about how well the economy is doing? The hell you say!
Three weeks ago, there were all kinds of stories about how the Brave Janet Yellen and the Wise Joe Biden stoped the almost completely inevitable widely predicted coming 2024 recession.
It was a miracle of Democrat leadership and a wonderful Fed!
Right then? I knew that the recession is already underway, and it’s going to be deep, ugly and painful.
How much of this growth is merely social service spending on the 6-12 million new illegals Joe Biden let cross the border? Food, shelter, clothing?
Get your own house in order financially. Save money if you can.
I AM saving money … so I can pay the second installment of my property taxes … and the Federal Taxes I will owe in mid April. My next biannual homeowners and auto insurance payment is due then too. I am also saving money to pay the costly winter installments of my PG&E bill that just increased by another 12% … because global warming or something
Yes, I am saving money to barely keep my head above water
Exactly. Death and taxes and I’m still not convinced on the former.
This topic is too complex for Liberals and NDPers.
Canada’s debt is about 900% of GDP.
Luxembourg’s is 7000%.
Degrees of stupid.
We will get there if the liberal/ndp have anything to say about it.
These numbers are without other context, and so is you “data” on Canada and Luxembourg.
Government debt to GDP ratio for Canada is 70% and Luxembourg is 30%.
It gets worse.
Economics 101: Expansionary fiscal policy increases GDP in the short run but reduces it in the long run. Again.
The resultant inflation and loss of productivity means GDP likely decreased in real terms even the short run.
The Laffer curve is not funny, so hopefully the joke of raising tax rates will somehow raise revenues is moot.
TheU.S. blowouy economy is on a sugar high.