If there were any justice in the world, GDP would be a four letter word. There is no other economic statistic in our world that is so deceiving and does so much harm as GDP. We were just informed today that GDP went up 2.5% in the latest quarter. That would all be well and good if we had an accurate gauge of inflation, which according to John Williams of Shadowstats.com is rising at 13% annualized rate. But Uncle Sam is only willing to admit 3% inflation which means that the economy is actually contracting. And as if this wasn’t bad enough, GDP increases as borrowing increases. And all those government workers who seem to be on a perpetual coffee break at taxpayer expense and who produce absolutely nothing but red tape, they increase GDP as well. So the next time you hear about GDP going up, make sure you’re sitting down and that you’re not eating anything.
If you want to learn more about the Real GDP check out John Tamny’s Article.
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