Re: [A-List] New Economy Bull, an expose

["Annewilliamson" <Annewilliamson@xxxxxxx>]

Mark, I put your query ("Is there some distinction  between 'GDP' and 'total
gross output' which
allows the latter to be almost double the former, in the same US economy?
What don't I get here?")
to Sean Corrigan directly.

Here is his reply:


GDP only measures final value  - retail tickets, if you like - plus a little
sliver of arbitrarily defined fixed investment - so in fact it is mostly a
Net Domestic Expenditure not a Gross Domestic Product.... but when you think
of all the people who sweat to put the stuff in the shops, they get missed
out... it's these intrafirm - or B2B, if you like - flows that are critical
since they account for gross, not just net investment, or circulating - not
just fixed  - capital if you prefer... this is the stuff of corporate
revenues and hence employee and shareholder incomes and the opportunity for
profits.... GDP doesnt measure these at all accurately.... Input-Output is
still way too crude, but its a magnitude or two more illuminating...


Best

Sean


From: "Mark Jones" <markjones011@tiscali.co.uk>
To: <a-list@lists.econ.utah.edu>
Sent: Tuesday, September 10, 2002 10:59 AM
Subject: Re: [A-List] New Economy Bull, an expose


> AI love this stuff, but want to understand the following, and don't:
>
> >The fact is, GDP can give us only a very partial insight
> >into the mechanisms at work. Consider the BEA's Input-
> >Output data. For 1998, when these were last compiled,
> >GDP stood at $8.8 trillion, and personal consumption was
> >$5.9 trillion.
> >
> >Manufacturing seemed to be fairly inconsequential at
> >$1.5 trillion in the GDP numbers and made a smaller
> >contribution than either finance ($1.7 trillion) or
> >services ($2.1 trillion).
> >
> >If you look at what was actually being made and sweated
> >over within the economy...what provided the jobs, on the
> >one hand, and the opportunity of profits, on the
> >other...then the picture is quite different from the
> >less than perfect one you hear blathered by "experts" on
> >CNBC.
> >
> >In fact, the total gross output of the economy now comes
> >to $15.4 trillion in turnover. And manufacturing - at
> >$3.9 trillion - suddenly swells to being the largest
> >constituent of them all. 55% greater than finance, and
> >10% larger even than the much-vaunted service sector.
>
> Is there some distinction  between 'GDP' and 'total gross output' which
> allows the latter to be almost double the former, in the same US economy?
> What don't I get here?
>
> Mark
>
>
>