Why is it real GDP when a government contractor makes a PDF report, but isn't real GDP when I make a poem?
Because money paid to the government contractor results in a person (persons?) getting paid along the way and then a large part of that flows into the real economy via consumption / spending.
In your $50 trillion poem example, no money can possibly flow into the real economy because you simply do not have $50 trillion to pay anyone - you're just describing a wash trade of a worthless $50 trillion IOU note not unlike a NFT or crypto memecoin. Best case is that the poem is worth something non-negative.
That's the point.
Re:Atlanta Fed predicts -2.8% GDP
by JumpCrisscross on Monday March 03, 2025 @04:49PM
(#43247250)
GDPNow tracks real GDP.
Ah, thanks! Interesting. How does it know which is Real and which is poems?
Re:Atlanta Fed predicts -2.8% GDP
by insane_dreamer on Tuesday March 04, 2025 @03:37PM
(#43259582)
Ask DOGE ;)
Nominally, yes. Real, no. (In practice, given the barter resemblance of the trade, there would be no impact.)