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He addresses this scenario: Let’s take another example, which is more like what actually happened in Q1. Suppose an American company, Best Buy, decides to buy
by orangecat 1y ago
He addresses this scenario:
Let’s take another example, which is more like what actually happened in Q1. Suppose an American company, Best Buy, decides to buy a Chinese TV and put it in a warehouse, because it knows that tariffs are coming soon. That purchase counts as inventory investment. So investment goes up by $1000. And just like in the previous example, net exports go down by $1000. The two cancel out, and the total contribution of the imported TV to U.S. GDP is zero.
- rufus_foreman 1y agoFrom the BEA, "The decrease in real GDP in the first quarter primarily reflected an increase in imports, which are a subtraction in the calculation of GDP" Bureau of Economic Analysis is wrong here?
- kspacewalk2 1y agoYes.
- satanfirst 1y agoYou skipped the next sentence where these are partially canceled out by investment, consumer spending, etc. Not wrong, deceiving. Real GDP is down because of some factors that cancel out and because the President sucks. Is the correct way to read that executive approved message. https://en.wikipedia.org/wiki/Howard_Lutnick https://en.wikipedia.org/wiki/Howard_Lutnick https://www.bea.gov/ https://www.bea.gov/ "These movements were partly offset by increases in investment, consumer spending, and exports." You can't make someone understand what that investment and consumer spending is if their job depends on not understanding it.