It is highly likely that real economic growth in the USA in overestimated by 26% since 1979
We discussed the problem of inflation definition in the USA in many posts (e.g., this one). The principal finding is that the CPI and GDP deflator, dGDP, started to deviate in 1979 due to the introduction of new price inflation definition. Figure 1 presents the CPI and dGDP and gives a clear understanding that the dGDP is just the CPI divided by 1.22. This is an important observation for an unbiased real GDP per capita estimate in the USA. The new definition is highly likely was introduced to obtain a larger real GDP per capita than was calculated with the CPI. Figure 2 presents the real GDP per capita reported by the BEA and that recalculated using the ratio of the CPI and dGDP. One can see that the GDP per capita in 2019 should be $39,500 instead of the reported value of $49,649, i.e. only 80% of the current level.
It is highly likely that real economic growth in the US in overestimated by 26% since 1979
Figure 1. The CPI and dGDP in the USA. After 1979, dGDP=CPI/1.22.
Figure 2. The GDP per capita estimates in the USA as published by the BEA and that corrected with the difference between the dGDP and CPI.
Source: http://mechonomic.blogspot.com/2021/02/it-is-highly-likely-that-real-economic.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).