In response to:

Making Sense of Keynesian-Laced GDP Reports

Mary218 Wrote: Feb 01, 2013 8:50 AM
It helps to understand GDP if you've studied the workings and insane bureaucracy of the USSR economy where everyone worked for the government. Gaidar's "Collapse of an Empire" is worth reading, and it's also very well-written. "Wheel of Fortune" is another book about the Soviet oil sector. Oil and gas exports kept them going for a long time but eventually the bureaucracy destroyed innovation. Washington looks more and more like Moscow.

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...