Gross Output
Gross Output V: New 2009 Data
The new Gross Ouput data was released in mid-December, but I’ve just become aware of it now. The new data is shocking in terms of its revelation into the nature of the “Great Recession.” As shown in the chart below, just as with the two previous recessions, the drop in Intermediate Inputs (II) was much [...]
Gross Output IV
Sorry, this blog has been sitting on the shelf for far too long. In my previous blog on Gross Output, I fully disaggregated business-to-business (B2B) expenditures versus consumer expenditures. The chart in that blog showed that B2B expenditures made-up 53.5 percent of Gross Output while consumer expenditures made-up a much lower 38 percent. In addition [...]
Gross Output III
So, to contest the notion the the “economy is two-thirds consumption,” all of the Business-to-Business (B2B) transactions must be separated from both Gross Output and Gross Domestic Product (GDP). For Gross Output, B2B transactions consists of all Intermediate Inputs that I’ve discussed previously. However, GDP contains one element of B2B and that is for the [...]
Gross Output II
In my previous blog on Gross Output, I discussed how GDP is not the final word when it comes to measuring the economy. This might be nothing more than an academic point if there wasn’t more to the story. I believe there is. The chart below shows the annual percent change in Gross Output, Intermediate [...]
Gross Output I
Whenever I hear someone say the “economy is two-thirds consumption” I just cringe. It betrays a fundamental misunderstanding of America’s statistical system–the assumption that our economic data is objective. The reality is that “all data is theory-laden.” Put simply, who do you think were staffing federal statistical agencies back in the 1930s when many of [...]
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