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by willcipriano
817 days ago
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If you want to dig further into it GDP is adjusted by the GDP deflator and that is lower than CPI. Due to (intentional) methodological flaws like hedonic quality adjustment, owner imputed rent and a basket of good arrived at by a team of economists rather than surveys of what households are actually buying, CPI is lower than what a household needs to increase its budget by in order to stay afloat, it's lower than inflation. Therefore if the government engaged in deficit spending and that spending resulted inflation that would result in a better percentage of GDP than expected as a lot of the "growth" is just dollars becoming less valuable. |
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