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| METHOD #1: INFLATION-ADJUSTED CHANGE IN GDP |
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| METHOD #2: CHANGE IN INFLATION-ADJUSTED GDP |
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3 comments:
Order of Operations
For Method #1 with GDP, I am subtracting 2010 dollars from 2011 dollars. (I am subtracting the 2010 quantity of 2011 dollars from the 2011 GDP. This is clearly wrong.)
For Method #2 with GDP, I am subtracting 2009 dollars from 2009 dollars. This is correct.
For Method #1 with debt, I am subtracting 2010 dollars from 2011 dollars IN ORDER TO GET 2011 DOLLARS ONLY. Then I adjust the 2011 dollars to base year dollars, where I can add them up fairly. This is correct for debt, I am quite confident.
Method #1 works for GDP but not for debt.
Method #2 works for debt but not for GDP
Or so I now think.
That would be weird, Art.
Not weird. Just seems weird because everybody thinks it's okay to inflation-adjust debt the same way we inflation-adjust GDP.
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