Patterico's Pontifications


What Drove the Giant Increase in the Phony and Meaningless GDP Number?

Filed under: General — Patterico @ 12:11 am


Yay economy!

The linked post doesn’t say, but I bet most of that is subsidies. I.e. federal government spending. Which, I have been at pains to explain before, factors into GDP, making that number meaningless as a statement about consumers’ standard of living.

Put that together with the Fed’s New Bubble (this one is in asset prices like stocks and real estate) and you have all the makings of a phony recovery. If you are falling for it, I’m afraid you’re the sucker.

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