Thanks for the shout out, Richard. I have played all these roles in my investing lifetime...a no-hoper, a joker and many a time...a rogue..🤣
I gotta read up more on GDI. The link you provided above should be useful. Also think that the SMB index is good to keep an eye on for early signs of economic stress.
"When the captain of a ship has put out from Singapore bound for Boston, we have only one question to ask. And this question does not refer to typhoons, hurricanes, pirates, shoals, shallows or icebergs. The one question we ask is: Did you bring the ship into port?" Ebert Hubbard 1888.
Government spending is not included in GDP. Why? A significant portion of government budgets are transfer payments, like unemployment benefits, veteran's benefits, and Social Security payments to retirees. These payments are excluded from GDP because the government does not receive a new good or service in return or exchange.
fantastic read
Excellent post like usual Richard, thank you for all the time and effort you put into writing these!
Thanks for the shout out, Richard. I have played all these roles in my investing lifetime...a no-hoper, a joker and many a time...a rogue..🤣
I gotta read up more on GDI. The link you provided above should be useful. Also think that the SMB index is good to keep an eye on for early signs of economic stress.
Cheers and enjoy the long weekend!
"When the captain of a ship has put out from Singapore bound for Boston, we have only one question to ask. And this question does not refer to typhoons, hurricanes, pirates, shoals, shallows or icebergs. The one question we ask is: Did you bring the ship into port?" Ebert Hubbard 1888.
That captain is now going around the Cape of Good Hope, with its tumultuous seas, and taking weeks longer. This is why costs go up 300%+
Another thoughtful and though-provoking article.
I believe GDP is a mix of public and private "product". Is GDI purely private? I suspect yes, as does the public sector even have an income.? Thanks.
Government spending is not included in GDP. Why? A significant portion of government budgets are transfer payments, like unemployment benefits, veteran's benefits, and Social Security payments to retirees. These payments are excluded from GDP because the government does not receive a new good or service in return or exchange.