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Reply #11: Beware of GDP inflation [View All]

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ramapo Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Feb-15-04 04:55 PM
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11. Beware of GDP inflation
Today's GDP is not calculated the same as it was prior to 1995. Output due to computer spending is calculated not just on the price of equipment but also upon the computational power.

There have been huge increases in computer power since 1995 so comparing productivity and GDP of today to that of the Reagan and Bush years is a bit apples vs. oranges.

This takes a bit of the shine off the Clinton "New" economy too.
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