Connect with us

archive

‘Gross Output’ Predicted Slowdown in Economy

“Gross Output, long advocated by Mark Skousen, will have a profound and manifestly positive impact on economic policy and politics.”

–Steve Forbes, Forbes magazine (April 14, 2014 issue)

The editors of the Wall Street Journal gave me the lead editorial in the April 23 edition: “At Last, a Better Economic Measure.” You can read it here. The editors don’t let the author see the headline but they captured the concept perfectly with their headline. The graphic cartoon was also perfect — check it out.

Basically, I contend that Gross Output (GO) is better than Gross Domestic Product (GDP) in measuring the economy. GO is an attempt to measure spending at all stages of production. It corrects the fallacy fostered by GDP that consumer spending drives the economy. Actually, business spending at all stages of production is larger than consumer spending when you use GO as the measure of economic activity (over 50%, compared to less than 40% for consumer spending).

GDP Leaves out B-to-B Transactions

After my Wall Street Journal article came out, I was at a dinner party and a venture capitalist who does deals mainly in China came up to me and said, “I read your article in the Journal and couldn’t believe that B-to-B [business-to-business transaction] is left out of GDP. Unbelievable.”

Read more about how gross output is a better predictor of the economy’s performance at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Advertisement
Advertisement

TRENDING NOW:

The Divided State of Britain.

CULTURE

Democracy Dies with Chinese Propaganda.

CULTURE

Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals

Don’t Rush to War with Iran Over Some Tankers.

U.S. POLITICS

Brooklyn Bridge, 1890s Brooklyn Bridge, 1890s

The DNC Sold The Brooklyn Bridge To The FBI.

U.S. POLITICS

I contend that Gross Output (GO) is better than Gross Domestic Product (GDP) in measuring the economy. GO is an attempt to measure spending at all stages of production.

archive

??Gross Output?? Predicted Slowdown in Economy

I contend that Gross Output (GO) is better than Gross Domestic Product (GDP) in measuring the economy. GO is an attempt to measure spending at all stages of production.

??Gross Output, long advocated by Mark Skousen, will have a profound and manifestly positive impact on economic policy and politics.?

–Steve Forbes, Forbes magazine (April 14, 2014 issue)

The editors of the Wall Street Journal gave me the lead editorial in the April 23 edition: ??At Last, a Better Economic Measure.? You can read it here. The editors don??t let the author see the headline but they captured the concept perfectly with their headline. The graphic cartoon was also perfect — check it out.

Basically, I contend that Gross Output (GO) is better than Gross Domestic Product (GDP) in measuring the economy. GO is an attempt to measure spending at all stages of production. It corrects the fallacy fostered by GDP that consumer spending drives the economy. Actually, business spending at all stages of production is larger than consumer spending when you use GO as the measure of economic activity (over 50%, compared to less than 40% for consumer spending).

GDP Leaves out B-to-B Transactions

After my Wall Street Journal article came out, I was at a dinner party and a venture capitalist who does deals mainly in China came up to me and said, “I read your article in the Journal and couldn’t believe that B-to-B [business-to-business transaction] is left out of GDP. Unbelievable.”

Read more about how gross output is a better predictor of the economy’s performance at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Mark Skousen is a college professor, prolific author and world-renowned speaker. He??s made his unique sense of market and investment trends known and respected in the financial world. With a Ph.D. in economics and a focus on the principles of free-market capitalism and ??Austrian? economics, Mark Skousen has often gone contrary to the crowd in his investment choices and economic predictions ?? and has often been proved right.

TRENDING NOW:

The Divided State of Britain.

CULTURE

Democracy Dies with Chinese Propaganda.

CULTURE

Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals Gulf of Oman 'attack': Oil tankers on fire amid rising tensions between Iran and rivals

Don’t Rush to War with Iran Over Some Tankers.

U.S. POLITICS

Brooklyn Bridge, 1890s Brooklyn Bridge, 1890s

The DNC Sold The Brooklyn Bridge To The FBI.

U.S. POLITICS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter