The commonly used term “GDP,” stands for ‘gross domestic product,’ formerly “GNP,” or ‘gross national product.’ It matters not. Both stand for the same thing, and I am certain it is the most miss-understood measuring term there is, even though it is commonly used in news broadcasts and especially on financial channels and papers. Bake a cake, and you need a recipe, which includes measuring amounts. Fill your gas tank, and the measuring term is either dollars or gallons. Everything we do, is measured in various things, such as gallons, British Thermal Units, (BTU’s), pounds, ounces, volts, amps, acres, square feet, inches, feet, tons, miles, hours, minutes, degrees, etc. Measuring, is possibly the most important thing in our lives, and I hope I am not exaggerating.
What most Americans don’t know, and what you will never hear, is that the GDP INCLUDES ALL FEDERAL AND OTHER GOVERNMENTAL SPENDING.
All welfare, subsidies, public housing and subsequent waste, is part of the GDP.
All executive expenses, such as security, White House expenses, Air Force One and Two, all Congressional and executive travels and entertaining foreign dignitaries, are part of the GDP.
All military services, including the army, navy, marines, air force, coast guard, and their training, travel, uniforms, guns and armaments of all types, regardless of size or where they may be, are part of the GDP.
Endless streams of paper work, computers and office equipment, and salaries of non-productive bureaucrats, who are close to the largest job holders in America, are part of the GDP.
Poorly maintained National Parks and National Monuments, the TVA, National Forests, and other government operated departments, at huge losses, such as OSHA, EPA, NTSB, FHA, ad nauseum ad continuem, cabinet positions, and alphabet soup agencies and their employees, are part of the GDP. The daily millions of dollars in employee salaries and retirement payments, are part of the GDP.
Homeland Defense, or whatever new boondoggle may be conceived and put io to operation, is part of the GDP. How did we ever investigate accidents without the NTSB? Interest paid to the Federal Reserve, for the money they create out of thin air, and sell to the treasury, is part of the GDP. The futile war on drugs, the IRS, and the Department of Labor, which does no labor, the Department of Education, which educates no one, the Department of Energy, which produces no energy, or the Department of Agriculture, which grows nothing, are part of the GDP. All government agencies of county, city, and state governments in America, are part of the GDP.
What most people correctly consider the GDP to be, are the receipts and expenses of businesses, plus financial transactions such as stocks and bonds. Unfortunately, the Federal Government is the largest employer and biggest buyer of goods, which are part of the GDP, and shouldn’t be.
When Fox Business News or others speak of the GDP going ‘up’ or ‘down,’ they never note that the largest contributors to the GDP, happens to be the Federal and other governments and their acolytes, plus even prison expenses, to which I would like to send may thousands, for extended terms.
Basically, the GDP is supposed to be the degree to which the U.S. is climbing or descending economically, and it is supposed to be an accurate measurement; but it is not, and far from it. The GDP, is a terrible, misleading measurement, and no matter which way it goes, thanks to the totally un-productive sector and largest contributor to the GDP, we are being fooled continuously.
No government agency, sector, or employee, is productive, regardless of whether it is at state, county, city, or federal level. Fire department and police salaries and expenses are part of the GDP, but even though they are not productive, they are protective. Doctors and hospitals are necessary, as are banks, and transportation, which are part of the GDP, but are necessary for us, as are utility providers. Business transactions, real estate sales, builders, blue and white-collar workers, non-government employees of any kind or level, are part of the GDP, and we need them.
If the GDP were accurate, all government and their non-productive financial operations, should be excluded, and then we would have an accurate picture of the condition of our nation.
As readers of this column are well aware, thanks to the fake GDP figures, we may never know the true GDP, other than currently inflation is Bideneaque, and we look forward to his and leftist, socialistic democrats being defeated in the next two elections. Mean-time, keep your wealth measurements out of dollars, but rather make them in ounces.
Don Stott – don@coloradogold.com