Good ideas and conversation. No ads, no tracking. Login or Take a Tour!
- Those publicly subsidized private sources are the primary factored-into's of the GDP. Therefore there is no discrepancy there, I just don't see what mismeasurement he's talking about.
The discrepancy isn't about how we calculate GDP; it's about how we calculate government expenditure as a percent of GDP. He's talking about how those private expenditures would be greatly reduced were it not for public subsidies, and that those public subsides don't count as direct government spending as a percent of GDP. Therefore, when we measure the impact of government spending, we need to measure all government spending. Otherwise, when we make a calculation about austerity, for example, we can't possibly calculate its effects accurately (the old "garbage in, garbage out" adage).