Take the Government Out of GDP

Excerpt:

With the release of the 2024 Q1 Gross Domestic Product (GDP) data by the Bureau of Economic Analysis, the question of economic growth is on many minds. Real GDP growth slowed to an increase of 1.6 percent from a year ago, lagging well behind the 2.4 percent projection. The BEA commented that the increase is due to “consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment” as well as an increase in imports. It is important to note here that the increase in state and local government spending came from an increase in government employee compensation, meaning taxpayers are getting the same government services as last year at a higher cost. 

Read the full article at: https://thedailyeconomy.org/article/take-the-government-out-of-gdp/