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Latest Gross Domestic Product Growth Shows Value of Using Gross Output

Stocks sold off sharply today. Finally, the much anticipated correction is happening, but I don’t see any fundamental reason for the decline. It’s purely a technical correction.

Real gross domestic product (GDP) rose in the 2nd quarter at a 4% annualized rate as a sharp improvement from the negative GDP announced in the first quarter.

The latest growth number was no surprise to Joel Stern, an adjunct finance professor at several universities and a perennial speaker at the FreedomFest conference that I chair each July in Las Vegas. Stern predicted 4% annual U.S. GDP growth this year, despite the government’s report that GDP shrank in the first quarter.

As a champion of the federal government’s decision to begin reporting the Gross Output (GO) statistic on a quarterly basis earlier this year, I consider the latest variation of the GDP reading from the first quarter to the second quarter as evidence of the value of having an alternative indicator for economic growth. The GO statistic includes business-to-business commerce, so it is a broader indicator than GDP, which excludes such activity.

Read more about how the latest data shows the value of gross output at Eagle Daily Investor.

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Latest Gross Domestic Product Growth Shows Value of Using Gross Output

As a champion of the federal governmentâ??s decision to begin reporting the Gross Output (GO) statistic on a quarterly basis earlier this year, I consider the latest variation of the GDP reading from the first quarter to the second quarter as evidence of the value of having an alternative indicator for economic growth.

Stocks sold off sharply today. Finally, the much anticipated correction is happening, but I don’t see any fundamental reason for the decline. It’s purely a technical correction.

Real gross domestic product (GDP) rose in the 2nd quarter at a 4% annualized rate as a sharp improvement from the negative GDP announced in the first quarter.

The latest growth number was no surprise to Joel Stern, an adjunct finance professor at several universities and a perennial speaker at the FreedomFest conference that I chair each July in Las Vegas. Stern predicted 4% annual U.S. GDP growth this year, despite the governmentâ??s report that GDP shrank in the first quarter.

As a champion of the federal governmentâ??s decision to begin reporting the Gross Output (GO) statistic on a quarterly basis earlier this year, I consider the latest variation of the GDP reading from the first quarter to the second quarter as evidence of the value of having an alternative indicator for economic growth. The GO statistic includes business-to-business commerce, so it is a broader indicator than GDP, which excludes such activity.

Read more about how the latest data shows the value of gross output at Eagle Daily Investor.

Written By

Mark Skousen is a college professor, prolific author and world-renowned speaker. Heâ??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 â??Austrianâ?ť economics, Mark Skousen has often gone contrary to the crowd in his investment choices and economic predictions â?? and has often been proved right.

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