In response to:

Making Sense of Keynesian-Laced GDP Reports

Macroman Wrote: Feb 01, 2013 8:00 AM
Mitchell is wrong about national income accounting (NIA). There are 2 ways to measure national income: production of final goods and services and expenditures on final goods and services. By the NIA identity, they MUST be equal. There is nothing wrong with measuring national income by adding up all the expenditures. In fact the government measures national income both ways. Mitchell is right that there is a problem with the way the media report the data. The media describe changes in expenditure patterns as if they are the cause of changes in total output. That may be right but need not be so. Identities in themselves cannot reveal cause and effect. Did defense production fall because defense production fell or the other way around?
Guywithaheart Wrote: Feb 01, 2013 8:35 AM
I don't share Dan's libertarian philosophy, but I think you're misreading his analysis. He's not claiming that GDP numbers are illegitimate, or that they're not the flip side of GDI. Instead, he's simply saying that GDP data leads some to reflexively support Keynesian spending. But if the focus was on GDI, he thinks people might focus more on how to boost employee compensation, corporate profits, small busines income,etc.
Chris from Kalifornia Wrote: Feb 01, 2013 8:13 AM
Except that no matter how much of anything you produce, if no one has the money to buy it, you are stuck with it. Buggy whip anyone?
Pistol Wrote: Feb 01, 2013 8:42 AM
Those who produce something basic and useful have no need of money. They trade their production for something else they want. In a subsistence economy, this would be food or shelter. In a complex society, money becomes a convenient medium of exchange, its value based on mutual agreement. Your problem is more accurately stated "If no one else produces anything, you are stuck with what you alone can produce".

And so the 3 legged stool of prosperity. First production, then trade, then asset security. Where these exist, so does prosperity. Insofar as these are hampered or absent, prosperity disappears. Money has litle to do with it.
jfoster Wrote: Feb 01, 2013 9:00 AM
You mean, like the hypocritical Progressives on the left who use barter in order to avoid paying taxes and cheat their beloved big government?

By the way, there is also the 3 legged stool consisting of capital, labor and raw materials that will also feed into the equation. The arbiter being whether or not someone wants the widget at the price the widget is being offered (cost, overhead and profit). A correction in the quality of the widget may be sacrificed in order to reach an acceptable cost to the purchaser. Unfortunately I do not believe that the statist, Keynesian model is based upon these simple, tried and true concepts.
Pistol Wrote: Feb 01, 2013 9:43 AM
Good morning, jfoster.

Capital, labor and materials are the second tier supporting production.
Magna Wrote: Feb 01, 2013 9:48 AM
I am still waiting for my last order Thank You.-and does anyone have some Electric Typewriters they would like to sell ?

Fighting against statism in Washington is a lot like trying to swim upstream. It seems that everything (how to measure spending cuts, how to estimate tax revenue, etc) is rigged to make your job harder.

A timely example is the way the way government puts together data on economic output and the way the media reports these numbers.

Just yesterday, for instance, the government released preliminary numbers for 4th quarter gross domestic product (GDP). The numbers were rather dismal, but that’s not the point.

I’m more concerned with the supposed reason why the numbers were bad. According to...