There is one big component hidden in GDP at current price. It is assumed that, since its inception in 1934, all prices in GDP calculations are free of economic rents, which is an absurdity. So if you strip out unearned economic rents for finance, insurance, legal, pharmaceuticals, platform economies, labour unions, lobby groups, big tech, etc, you would have the close to reality actual earned income level for 90% of Americans, most of whom survive from pay check to pay check. So yes, theoretically, nominal GDP, before deflator applied, doesn't reflect true productivity, as a big portion of it is a computation of rent capitalism. There is no such thing as per capita GDP in real outside world, it's a made up number which doesn't have actual physically identifiable persons, addresses, or a collection of them.
American Economics Thread
- Thread starter Bernard
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There is one big component hidden in GDP at current price. It is assumed that, since its inception in 1934, all prices in GDP calculations are free of economic rents, which is an absurdity. So if you strip out unearned economic rents for finance, insurance, legal, pharmaceuticals, platform economies, labour unions, lobby groups, big tech, etc, you would have the close to reality actual earned income level for 90% of Americans, most of whom survive from pay check to pay check. So yes, theoretically, nominal GDP, before deflator applied, doesn't reflect true productivity, as a big portion of it is a computation of rent capitalism. There is no such thing as per capita GDP in real outside world, it's a made up number which doesn't have actual physically identifiable persons, addresses, or a collection of them.
The US economy expanded an annualized 5.2% in Q3 2023, higher than 4.9% in the preliminary estimate, and forecasts of 5%. It marks the strongest growth since Q4 2021. Nonresidential investment was revised higher to show a 1.3% rise instead of a 0.1% fall initially estimated, as the drop in equipment was shorter (-3.5% vs -3.8% in the advance estimate) and structures surged 6.9% (vs 1.6%). Also, residential investment rose for the first time in nearly two years and at a much faster pace than initially expected (6.2% vs 3.9% in the advance estimate). Meanwhile, private inventories added 1.4 pp to growth, above 1.32 pp in the previous estimate and government spending increased faster (5.5% vs 4.6%). On the other hand, consumer spending went up 3.6%, slightly less than 4% in the advance estimate, but remaining the biggest gain since Q4 2021. The slowdown was mainly due to services spending. Exports soared 6% (vs 6.2%) and imports increased less (5.2% vs 5.7%).
source: U.S. Bureau of Economic Analysis
source: U.S. Bureau of Economic Analysis
supercat
Major
13 months in a row:
| FARM GROUPS WARN AGAINST IMPACTS OF CHINA'S PNTR REPEAL |
Funniest thing I've seen all week. The farmer hillbillies forced to take China's side. Guess they finally realized who their biggest customer actually is, after China replaced them with suppliers in Latin America and South Africa.
(Washington, D.C.) - A coalition of major agricultural organizations representing farmers across America today to the U.S. Select Committee on the Chinese Communist Party asking them to consider the negative impacts to farmers as they consider recommending that Congress repeal China's Permanent Normal Trade Relations (PNTR) status.
"We respectfully urge this important committee NOT to recommend revoking China's PNTR status. The negative consequences for American farmers, ranchers and food producers would be profound and the economic impact on American workers and rural communities would be felt for years," the organizations write.
The letter points out that "China is now the largest buyer of U.S. food and agricultural products, purchasing 19% of our exports. These exports are critical to America's farmers and rural communities."
The letter also highlights lessons learned from the 2018 and 2019 tariff increases and the pain they inflicted on American farmers:
"Those retaliatory tariffs led to a significant reduction in U.S. agricultural exports to retaliating partners with China accounting for approximately 95 percent of the losses ($25.7 billion). Rural states with significant agriculture economies like Iowa, Illinois, Kansas, Minnesota, Indiana, Nebraska, and Missouri were hit the hardest."
The letter was led by Farmers for Free Trade which counts many of the nation's leading agricultural organizations as members including:
The Almond Alliance
American Soybean Association
Corn Refiners Association
The Distilled Spirits Council of the U.S.
Farmers for Free Trade
Iowa Soybeans Association
Leather and Hide Council of America
Meat Institute
National Corn Growers Association
National Council of Farmer Cooperatives
National Milk Producers Federation
National Sorghum Producers
Northwest Horticultural Council
U.S. Apple Association
U.S. Dairy Export Council
USA Poultry & Egg Export Council