Does inflation skew the GDP ?

[uscitizen]

I really don't know, but does inflation skew the GDP in an upward direction when there is really no growth at all ?

 

[CanadianKid]

I really don't know, but does inflation skew the GDP in an upward direction when there is really no growth at all ?

Yes it does.

It screws both nominal and real GDP as costs increase of materials and purchases of goods and services increase solely due to inflationary pressures...

CK



Good question by the way....Thats why even during the worst periods of the Bush Presidency...economic growth managed to just be above 0%....

CK

 

[uscitizen]

So in real terms we are in a recession and inflation is cooking the books ?

 

[CanadianKid]

So in real terms we are in a recession and inflation is cooking the books ?

Yes exactly....

Because GDP only looks at the macro numbers.....

Aka you purchase 100 tons of wheat in 2005 for $100

and you purchase 100 tons of wheat in 2008 for $150

Your GDP went up 50%!

CK

 

[uscitizen]

Come on SF Chappy, etc is this right ? And would the rising price of gas also boost the GDP ?

I am not an expert Like topper, but suspect this to be true, and that we have been living in a real recession or near one for some time. As far as consumers / wage earners go anyway.

 

[Good Luck]

While GDP can be skewed by inflation, when economic growth is calculated from GDP figures, it is usually adjusted for inflation.

 

[FUCK THE POLICE]

I really don't know, but does inflation skew the GDP in an upward direction when there is really no growth at all ?

Yes, and that's why people usually use inflation adjusted GDP per capita whenever they compare GDPPC's across time.

 

[FUCK THE POLICE]

Come on SF Chappy, etc is this right ? And would the rising price of gas also boost the GDP ?

I am not an expert Like topper, but suspect this to be true, and that we have been living in a real recession or near one for some time. As far as consumers / wage earners go anyway.

You think you've found out something huge don't you?

 

[Annie]

While GDP can be skewed by inflation, when economic growth is calculated from GDP figures, it is usually adjusted for inflation.

Thanks, I thought so and you saved me from having to check.

BTW, my experience is that people know when a recession hits way before the government. Then when the government finally recognizes and often over reacts, is just about when it's over.

Of course the problem with oil costs may make this an exception.

 

[CanadianKid]

While GDP can be skewed by inflation, when economic growth is calculated from GDP figures, it is usually adjusted for inflation.

Adjusted for inflation doesnt mena anything, thats called adjusting for real inflation....

GDP is nominal inflation, so GDP adjusted for inflation is one bogus lie...

CK

 

[Epicurus]

USC you are seriously hilarious sometimes.

It's amazing how you've lived so long and learned so little.

 

[uscitizen]

You think you've found out something huge don't you?

I do that everytime I go unzip my pants.

 

[uscitizen]

so the increased price of gas does not increase the GDP ?

btw I noticed it too you a long time to come up with any reply.

 

[FUCK THE POLICE]

I do that everytime I go unzip my pants.

LOL

 

[uscitizen]

USC you are seriously hilarious sometimes.

It's amazing how you've lived so long and learned so little.

I know a lot , I just never tried to balance the books on a national scale.
Hey I admitted up front I did not know how this worked.

And such things were never in my job descriptions.
I guess the Army should have taught me that.