GDP = buying/selling things and investment. Government spending is almost always buying something. How could you extract this from GDP?
Elon is saying government spending should not be included in GDP. In reality GDP is what it is; find a new metric to use.
the quality of using GDP as a metric is low because of this. Also why GDP growth matters so much. Recessions are defined as negative GDP growth by 2 quarters. So government can deficit spend to hide a recession, that's the problem.
What you have to look at isnt GDP at all. find a new metric to use to determine recession. Here's mine.
Real GDP minus government deficit(all levels of government combined) per capita.
When you look at this metric. Canada, Germany, UK, France, Italy, Japan, spain, and estonia are in hidden recessions. Also why they all pretty much need to be negative bank rates and high inflation right now. Obviously this is a WW2 consequences that were put off until now.
Other ways to see the problem is 2030 worker shortage or the inverted population pyramids.
Elon is saying government spending should not be included in GDP. In reality GDP is what it is; find a new metric to use.
the quality of using GDP as a metric is low because of this. Also why GDP growth matters so much. Recessions are defined as negative GDP growth by 2 quarters. So government can deficit spend to hide a recession, that's the problem.
What you have to look at isnt GDP at all. find a new metric to use to determine recession. Here's mine.
Real GDP minus government deficit(all levels of government combined) per capita.
When you look at this metric. Canada, Germany, UK, France, Italy, Japan, spain, and estonia are in hidden recessions. Also why they all pretty much need to be negative bank rates and high inflation right now. Obviously this is a WW2 consequences that were put off until now.
Other ways to see the problem is 2030 worker shortage or the inverted population pyramids.