Wednesday, February 14, 2018

When did we start using GDP?

I googled GDP trend since 1947. It gave me yearly growth rates. Google doesn't seem to understand the difference between "growth" and "trend". How can this be?

I'm trying to find info on long-term trend rates of growth, with little success so far. But I did find this:


There are more questions, but you get the idea.

That first question caught my eye: When did we start using GDP? Because if you read stuff from the 1970s and '80s they use GNP, not GDP. If you started doing econ in 1977 like me, that was before GDP, far as I'm concerned. But "GNP" does sound funny, these days.

The change occurred in the 1990s, 1996 I think. Maybe 1992. I clicked to see the answer to the question:


1695?

"... developed the method further in 1695." Before 1695? Yeah thanks, google.

Grain of salt.


The Atlantic says "In 1991 the government switched from the old GNP to the GDP".

Better yet, see the Survey of Current Business from August 1991, page 8:
Beginning with the upcoming comprehensive revision of the national income and product accounts (NIPA’s), BEA will feature gross domestic product (GDP), rather than gross national product (GNP), as the primary measure of U.S. production. This change in emphasis recognizes that GDP is more appropriate for many purposes for which an aggregate measure of the Nation’s production is used. GNP will remain a key aggregate in the NIPA’s and will continue to be published regularly.
Under the heading Why feature GDP? they explain:
GDP refers to production taking place in the United States. It is, therefore, the appropriate measure...
Why? Because it is appropriate. Of course. The bullshit is deep, some days.

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