Re:The Rise of the Non-Working Class
by taylodl on Tuesday November 22, 2022 @03:21PM
(#33710928)
It used to be the production of durable goods produced in the United States. The first change during the Reagan administration was to include certain services. The hot topic of the day was whether a strong service economy was economically the same as a strong manufacturing economy.
The second change I believe was made during the first Bush administration and that was to include in the U.S. GDP those goods manufactured abroad so long as they were manufactured by American corporations or American-owned corporations. Suddenly the manufacturing GM was doing in Mexico and Ford was doing in Canada counted as U.S. GDP. The reason given for this change was the manufacture of goods that contributed to the bottom line of American corporations listed on American markets improve the health of American markets and thus the American economy. Critics pointed out this hid the amount of American manufacturing being moved overseas.
We can debate back and forth whether these changes are reasonable but one thing is clear - when comparing historical GDP numbers you're necessarily comparing apples to apples.
The second change I believe was made during the first Bush administration and that was to include in the U.S. GDP those goods manufactured abroad so long as they were manufactured by American corporations or American-owned corporations. Suddenly the manufacturing GM was doing in Mexico and Ford was doing in Canada counted as U.S. GDP. The reason given for this change was the manufacture of goods that contributed to the bottom line of American corporations listed on American markets improve the health of American markets and thus the American economy. Critics pointed out this hid the amount of American manufacturing being moved overseas.
We can debate back and forth whether these changes are reasonable but one thing is clear - when comparing historical GDP numbers you're necessarily comparing apples to apples.