In response to:

Ten Reasons for Declining GDP Growth Over Time

DuaneUrban Wrote: Feb 01, 2013 7:45 AM
This article left out the biggest reason which is the cause for most of the other reasons. Most of the jobs than can be offshored have been offshored. The reason why Economists lie about the economy is because short sighted investors, blinded by obscene profits have bitten off the arms that feed them. Our dollar is backed by the faith and trust the world has in the productivity of the American worker. Workers that for the most part don't have jobs (productive jobs that I like in manufacturing). Unless we manage to bring jobs back to the US our dollar will become worthless and that vast wealth hoarded by the wealthy will disappear overnight.
Pistol Wrote: Feb 01, 2013 9:25 AM
You got it bassackward, Duane. The jobs are going offshore because production relative to costs is going down here. This is the reason steel production moved from Pittsburgh to Korea. Your spending and buying habits reflect your wish to get the most for your assets. Can you expect anything different from an entrepreneur who is taking a risk when he spends?
Joe 145 Wrote: Feb 01, 2013 8:31 AM
"overnight" is an exaggeration. It only appears to happen overnight because most people do not see it until it is far too late. The "vast wealth hoarded by the wealthy" has been disappearing for many decades already. We are just in a later stage of the 'redistribution'. Where the CHANGE is occurring is how our government now runs our economy, or most of it. This is CHANGING as the government percentage continues to grow. And guess what? Our government does not do nearly as good a job as we do.
SolofTexas Wrote: Feb 01, 2013 11:03 AM

To compute "Real GDP" one has to adjust nominal GDP by a measure of inflation. Different measures of inflation provide different answers.

Doug Short at Advisor Perspectives has an excellent column following every GDP release showing what the reported GDP would look like with various deflators.

His latest report is Will the "Real" GDP Please Stand Up? (The Deflator Makes Big a Difference)

Related Tags: GDP