The Seen and the Unseen - hosted by Amit Varma cover image

Ep. 130: Demystifying GDP

The Seen and the Unseen - hosted by Amit Varma

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The Importance of Government Spending in the GDP

I'm just wondering, I'm just thinking aloud here. Has anyone actually surveyed that if you did not include government spending, this kind of destructive spending in the GDP, would the economy still have done apparently so well? So I don't know whether we have disaggregated data for the U.S. economy dating that far back. NBR itself would have the data. And it would show a recent government expenditure from that and recalculate US economy size to see what would have happened. It would show a smaller economy and it would show significantly lower growth rate because once you take government expenditure out, there was nothing much else that was happening. Once you take government out of the GDP

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