The Trump administration may exclude government spending from GDP, obscuring the impact of DOGE cuts
The Trump administration may exclude government spending from GDP, obscuring the impact of DOGE cuts
Commerce Secretary Howard Lutnick says he could take government spending out of his agency's reports on gross domestic product.
Summary
Commerce Secretary Howard Lutnick proposed separating government spending from GDP reports, claiming this would increase transparency as the Musk-led DOGE pursues spending cuts.
Economists warn this could distort a fundamental economic measure. Government spending is traditionally included in the GDP because changes in taxes, spending, deficits and regulations by the government can impact the path of overall growth.
Lutnick and Musk claim government spending doesn't create economic value, with Musk stating, "A more accurate measure of GDP would exclude government spending."
Critics note this downplays benefits of Social Security, infrastructure, and research.
And just like that, US public numbers became as reliable as China’s.