Don’t like the GDP numbers? Change the rules …
Seems easy enough. That way you can claim to be improving it even while nothing is actually improving in reality:
The Bureau of Economic Analysis announced last week it would be changing the guidelines with which it calculates Gross Domestic Product, more familiarly known as the GDP, the standard by which the size and growth of the economy is measured.
The change comes after more than five years of economic stagnation that, despite frequent claims of a strengthening recovery, have seen high unemployment and extremely slight growth in the size of the economy.
GDP is calculated by adding up the total amount of private consumption, investment, government spending, and net exports. The new changes, which will include definitional changes to expand what is counted in GDP, are expected to add 3 percent to the GDP report, while not changing the actual output of the economy.
The agency claims the changes in calculation “more accurately portray the evolving U.S. economy and to provide for consistent comparisons with data for the economies of other nations.”
Note the emphasized text. Realize that the addition of 3% to future GDP reports will be made without any explanation that a) there have been changes in the way it was calculate and b) in reality, the actual output of the economy has not changed at all.
But the administration will claim victory and the low information voters will buy it while the “no” information voters (those on the left who refuse to challenge anything put out by this administration) will crow about the “improvements” that the administration has brought to the economy.
Meanwhile the unemployment picture will remain the same (about 7.5%) until they can find a new way to calculate that and take about 3% off . Then we’ll be officially “fixed”.