Re:Atlanta Fed predicts -2.8% GDP
by gitfan86 on Monday March 03, 2025 @04:44PM
(#43247198)
Why is it real GDP when a government contractor makes a PDF report, but isn't real GDP when I make a poem?
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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.