{"id":27282,"date":"2017-10-26T06:44:11","date_gmt":"2017-10-26T11:44:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27282"},"modified":"2017-10-26T06:44:11","modified_gmt":"2017-10-26T11:44:11","slug":"why-gdp-is-fake","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27282","title":{"rendered":"Why GDP Is Fake"},"content":{"rendered":"<header><img decoding=\"async\" class=\"img-responsive\" title=\"Why GDP Is Fake\" src=\"https:\/\/www.strategic-culture.org\/images\/news\/2017\/10\/26\/or-39823.jpg\" alt=\"Why GDP Is Fake\" \/><\/p>\n<h3><a href=\"https:\/\/www.strategic-culture.org\/news\/2017\/10\/26\/why-gdp-is-fake.html\">Why GDP Is Fake<\/a><\/h3>\n<\/header>\n<p>Gross Domestic Product, or GDP, is the most commonly used measure and ranking of a nation\u2019s economy. According to the OECD and Wikipedia, its definition is: \u201can aggregate measure of production equal to the sum of the\u00a0gross values added\u00a0of all resident and institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs).\u201d No subtractions are included in it for debts that were undertaken in order to generate the given \u201cgross values added.\u201d A trillion dollars of increased assets (additional \u201cgross values\u201d of \u201cproduction\u201d) adds a trillion dollars to GDP, even if all of it was produced by increasing the debts by a trillion dollars: only the assets-side of the balance-sheet is relevant to GDP.<\/p>\n<p>However, wealth is assets minus liabilities; it is assets minus debts; it is\u00a0<em>not<\/em>\u00a0assets alone. Therefore, a nation\u2019s wealth has no necessary relationship at all to a nation\u2019s GDP, because the nation\u2019s wealth is its assets minus its liabilities, not its assets\u00a0<em>regardless<\/em>\u00a0of its liabilities (such as GDP is).<\/p>\n<p><a href=\"https:\/\/www.britannica.com\/topic\/gross-domestic-product\" target=\"_blank\" rel=\"noopener\" data-cke-saved-href=\"https:\/\/www.britannica.com\/topic\/gross-domestic-product\">Britannica provides this definition of \u201cGDP\u201d<\/a>: \u201cGross domestic product (GDP), total market value of the goods and services produced by a country\u2019s economy during a specified period of time. It includes all final goods and services \u2014 that is, those that are produced by the economic agents located in that country regardless of their ownership and that are not resold in any form. It is used throughout the world as the main measure of output and economic activity.\u201d In this definition, too, no subtractions are included in it for the debts. Britannica then goes on to state:<\/p>\n<p><em>GDP = Consumption + Investment + Government Spending + Net Exports<\/em><\/p>\n<p><em>or more succinctly<\/em><\/p>\n<p><em>GDP = C + I + G + NX<\/em><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why GDP Is Fake Gross Domestic Product, or GDP, is the most commonly used measure and ranking of a nation\u2019s economy. According to the OECD and Wikipedia, its definition is: \u201can aggregate measure of production equal to the sum of the\u00a0gross values added\u00a0of all resident and institutional units engaged in production (plus any taxes, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4394,16695,353,4549,2164,8203],"class_list":["post-27282","post","type-post","status-publish","format-standard","hentry","category-economics","tag-eric-zuesse","tag-fake-statistics","tag-gdp","tag-gross-domestic-product","tag-oecd","tag-strategic-culture-foundation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27282"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27282\/revisions"}],"predecessor-version":[{"id":27283,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27282\/revisions\/27283"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}