S1E24: Why GDP Fails to Accurately Measure Economic Health: Mark Skousen

First up, Steve speaks to a myriad of economic markers to look for this week, Boris Johnson, interest rates and noise about China. Then, accomplished economist, columnist and professor Mark Skousen calls for a new way to assess the health of the economy. While analysts traditionally look to gross domestic product (GDP) as the ultimate economic indicator, Skousen argues that its narrow focus obfuscates the real drivers of growth. Instead, he champions gross output (GO), which measures spending throughout the entire production process—not just the final output—as he believes it’s a far more comprehensive and accurate indicator of economic health. Hear Skousen dispel the popular Keynesian notion that consumer spending drives growth and why the U.S. may be on the path towards recession. Lastly, Steve’s Reads of the Weeks are two articles. The first is by Angelo Codevilla, “What’s Russia To Us?" And by Robert B. Zoellick, “The Trade Wars Winners Don’t Include Us.”

2356 232