the staff of the Ridgewood blog
Ridgewood NJ, many commentators complained over our rosy coverage of Thursday GDP numbers , after all it is hard to get excited about the economy when a bag of Doritos cost $6.
The gross domestic product (GDP) has long been a cornerstone metric for assessing economic health. However, a critical flaw persists in its calculation: the inclusion of government consumption expenditures. This aspect has always puzzled us. When the federal government is losing $2 trillion a year, more government spending is a negative, not a positive, for the economy.
Examining the Latest GDP Figures
The latest GDP reading for the recently ended quarter stands at 2.8%. On the surface, this seems like a solid figure. Investment rose by more than 7%, which is undoubtedly great news. However, once again, our economic analyst, EJ Antoni, pointed out that government consumption outpaced private consumer spending.
The Case for Fiscal Sanity
It’s time we start the journey back to fiscal sanity. Why not begin with a freeze on federal spending for three or four years? This approach could help curb the excessive government expenditures that currently inflate GDP figures, giving a more accurate picture of economic health.
A Path Forward
Reevaluating how we measure economic success is crucial. By excluding government consumption from GDP calculations, we can better understand the true state of the economy and make more informed decisions for sustainable growth.
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With this administration question everything! Example: crime is down nation wide! Well in the report big liberal cities were excluded! NYC, Chicago etc!