Data shift to lift US economy 3%

[jakeXT]

Source: FT

Data shift to lift US economy 3%


The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.

Billions of dollars of intangible assets will enter the gross domestic product of the world’s largest economy in a revision aimed at capturing the changing nature of US output.

Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.

“We are carrying these major changes all the way back in time – which for us means to 1929 – so we are essentially rewriting economic history,” said Mr Moulton.

Read more: http://www.ft.com/intl/cms/s/0/52d23fa6-aa98-11e2-bc0d-00144feabdc0.html

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I guess they found a method to close the output gap.

PS:FT articles can be often read by typing the headline into google and clicking on it.


edit: link and content corrected, accidentally mixed both articles

US economy gets a Hollywood makeover

The US economy will look different from July.

That is not because of a shift in its underlying prospects, but because of a comprehensive update to the national accounts by the Bureau of Economic Analysis, producing the most dramatic change to the way gross domestic product is measured in more than a decade, with preliminary estimates adding about 3 per cent to US GDP.

http://www.ft.com/intl/cms/s/0/63bbbd22-aa95-11e2-bc0d-00144feabdc0.html

[Journeyman]

1. Wonder what the impact of this will be on us? . . .

Betcha it rings all sorts of positives for Working Joe and Laboring Josephine.

What other reasons could they have to mess with the numbers but to cook the books in the favor of us Citizens?

[DallasNE]

2. Will This Change Make The Gap Between

Have's and have not's even greater. That would help explain the delivery mechanism for this shift. If that is the case it will help with the policy debate over how to correct this serious problem.

[caseymoz]

3. I feel richer already.

Happy days are here again.

[Kolesar]

4. The comments here smack of "anti science"

Good data is needed to assess the impact of policy decisions.

[hughee99]

7. I don't think the issue is necessarily anti-science.

Personally, I'm all for any study that provides more accurate information, but will the new numbers actually be used for enlightenment or support?

For example I think everyone understands that 10% unemployment (as currently calculated) is bad, and lets say the government puts out that there's 10% unemployment. Imagine if they figure out a new system of calculating unemployment that turns the 10% into 7% and announce that unemployment is now 7%. People will believe that things have improved SIGNIFICANTLY from the previous 10%, when in fact, the reality has not changed at all.

Next year during the '14 election season, no doubt someone will be touting the GDP which just got a 3% bump from the new system, and comparing it to a * era news article using the old system talking about how much things have improved without mentioning that it's now an apples to oranges comparison now. Yes, they've announced they're going to go back and recalculate previous years under this new system, but this now means the only way you can get apples to apples comparisons is to go to this one source for all your info. Understandably, that can make people nervous.

[Larry Ogg]

5. Translation... "Economic Bullshitery", the new euphemism for growing the economy...

When your to stupid or venal to change things for the better, change the perception.

Political Science 101

[Fuddnik]

6. I'm rich, bitch!!!!

I put up a video of my dog on Youtube. I'll be rolling in dough soon. The royalties should more than make up for my decreased Social Security payments.

Austerity, shmausterity! Roll out the champagne.