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US Economy set to increase by 3% in July! ...Kinda..

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posted on Apr, 22 2013 @ 10:46 AM
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When the going gets tough, the tough get going ...to their calculators and regulation books anyway.

So what do you do when you have a crappy economy that just won't behave? Unemployment isn't improving but for where people are literally not looking any longer and shrink the totals by that means alone? Why, you redefine how you tabulate the numbers of course! (Must be nice when you can literally change outcomes by how it's punched into a spreadsheet! ...now where is mine for the household budget??)


The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.

Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output.


Pretty clever eh? Just change a few things here...and there...and WHAMMO! We have 3% overall growth like magic! Oh, but some will say this comes every set number of years for re-evaluation. Every 5 years as the article states. Then again, the article notes another detail which makes that first point rather misleading, I think.


“We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.

The changes will affect everything from the measured GDP of different US states to the stability of the inflation measure targeted by the Federal Reserve. They will force economists to revisit policy debates about everything from corporate profits to the causes of economic growth.
Source

Oh Yessir! I fully trust the current leadership both on the left AND right to choose this moment in US history to re-write the economic history itself. Why not? I'm sure there will be absolutely nothing political involved in the outcome or how it reads when they're done. Right?

The last part of the article even mentions that these changes are expected to be so far reaching, they honestly have NO idea how it will turn out.

....Yeah... This same Government that has entire departments dedicated to nothing but running "what-if''s to determine just what might happen if the most wild and outlandish events were someday, on a blue moon across the 5th Tuesday of a month were actually to happen. We're to believe they are doing this massive shift of basic economic analysis and methods...with no clue to outcome?

I suppose they really do think that little of the public that we'd believe that? I'm downright insulted on this. Anyone else?




posted on Apr, 22 2013 @ 10:51 AM
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reply to post by Wrabbit2000
 


They can say that the economy is improving only so many times. But when people look around see how it is not affecting them, they just don't believe it anymore.

Besides, a .03 improvement is really not much of a improvement in peoples eyes. They want to see a number in front of that point. That may be why the Gov't is doing this. But it won't last long unless there are visible gains.



posted on Apr, 22 2013 @ 10:54 AM
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And to think that this government has the audacity to call out other countries when they "cook the books" to get similar results.
I guess things really are getting better.....don't believe me, just ask the government they never lie!


One day all of this is going to come back and bite them really really hard.



posted on Apr, 22 2013 @ 10:55 AM
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reply to post by Wrabbit2000
 


Why stop there? If people are "working" at looking for a job, then just cut that under-reported unemployment figure down to 0.8%!

(this administration disgusts me!)
edit on 22-4-2013 by beezzer because: (no reason given)



posted on Apr, 22 2013 @ 10:59 AM
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That's good
If the economy is not recovering just change the way you evaluate the evidence and make it appear to be better
Can't this government fix things instead of covering them up


Maybe we should put bars around Washington to contain all the criminals. I'm not speaking of Taverns either.

edit on 22-4-2013 by rickymouse because: (no reason given)



posted on Apr, 22 2013 @ 11:34 AM
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The numbers crunchers have come to our rescue. Let the good times roll!



posted on Apr, 22 2013 @ 12:29 PM
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reply to post by Wrabbit2000
 


Sorry to disagree with you again, Wrabbbit (I have actually starred a couple of your posts since our last tete-a-tete), but in fact the Government are deliberately NOT fiddling the figures here. Re-calculating GDP figures from previous years to reflect the new methodology will allow a year-on-year, like-for-like comparison. There will NOT be 3% growth, because the re-stated figure from last and previous years will be measured taking the new components into the equation. Had the Government NOT re-calculated the figures from previous years then, yes, it would have appeared to show a 3% growth between last year and this (and we would have rightly criticised them for doing that).

The full announcement also explains that a similar change to the methodology took place in 1999 when, for the first time, computer software was taken into account. We have to move with the times, and there has to come a point where changes (in the way GDP, or inflation for that matter, is measured) need to be made. Can you imagine if today's GDP was calculated WITHOUT measuring the value of computer software?



posted on Apr, 22 2013 @ 02:05 PM
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reply to post by lacrimoniousfinale
 


Well, heck, I don't mind. It's not me you'd be disagreeing with anyway. It's a spokesman for the Bureau of Economic Analysis. Brent Moulton to be specific for who called the 3% figure and described it as something different and outside the norms of what has been done in previous re-evaluations.

2013 Revision to NIPAs

Page 15 onward describes new methodology with comparison to the old. I'm no economic specialist though, so I am going by the BEA's take on what they've been told/chosen to do this time. It should be interesting to see for how it turns out. We'll know when it's done and we see the outcomes compared to adjustments and change levels from previous revisions, right?



posted on Apr, 22 2013 @ 03:08 PM
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reply to post by Wrabbit2000
 


Thank you for the link. What mind-boggling detail these econometricians have to go into!


It should be interesting to see for how it turns out. We'll know when it's done and we see the outcomes compared to adjustments and change levels from previous revisions, right?


We would hope so, but American Thinker raises an interesting point:

"It isn't so much that the administration is goosing the numbers, it's that their defenders won't mention the changed measurements and use the increase as proof that Obama's policies are "working."

We will make sure to remind them when the time comes of the real reason for any increase."



posted on Apr, 23 2013 @ 02:15 PM
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This is a good article that explains it all. Please read it. It seems like everyone here doesnt understand why they are doing this.



posted on Apr, 23 2013 @ 02:30 PM
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reply to post by Wrabbit2000
 


Explanation: S&F!

It is not that it is being done that concerns me at all because services are also intangible and their worth is also factored into the economic GDP of any country.

WHO IS DOING THIS UPDATE???



In an interview with the Financial Times, Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, said the update is the biggest since computer software was added to the accounts in 1999.

"We are carrying these major changes all the way back in time - which for us means to 1929 - so we are essentially rewriting economic history," said Mr Moulton


Ahhhh I see now ... so it is not independant and unbiased at all! :shk:


Personal Disclosure: How about the USA get the UN's IMF to be an independant and impartial umpire OVERSEEING the legitimacy of such an upgrade!


Seems to me the poor obese USA is trying to fiddle with its weight scale for egoic reasons and not for healthy ones.


U Sux America!



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