Monday, August 23, 2010

How has the price of oil effected the numbers used in the GDP?

Numbers can and are manipulated. Compare the COLA for social security and inflation stays flat. Look at the COLA for congress and they get a $20,000 dollar a year raise. because of inflation.How has the price of oil effected the numbers used in the GDP?
If gasoline goes from $ 2.00 to $ 4.00 per gallon, 100% increase, and GDP goes up 10% during the same time frame, the economy is doing horrible even though the media may say look at the GDP 10% increase. If 1 million loaves of bread are sold for $1.00 per loaf and the next month 500,001 loaves for $2.00 per loaf GDP has increased but the number of units sold is down 50%. GDP does not mean much during inflationary times as we are now living.How has the price of oil effected the numbers used in the GDP?
It's skewed them to look better than it really does.
It has lowered our GDP considerably! Now everyone knows that our streets are not paved in gold! Darn!
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