Gross Domestic Product probably is the best measure of U.S. economic health that we have. But it is not perfect.
Gross Domestic Product, basically the value of all goods and services, includes nearly everything in the economy.
That means no stone goes unturned in counting spending. It also means that some spending counts as growth even though it may not translate into a real economic gain.
Examples of the latter may include job searches, increasingly expensive fuel and food, legal and medical fees, and cash outlays that go along with business or marriage partnerships dissolving. In these cases, someone gains, but the value of the gain is in the eye of the beholder. The net impact on economic productivity remains a mystery.
Gross Domestic Product grew by 0.6 percent in the first quarter, according to news reports. That matched last quarter’s growth rate, the Wall Street Journal reported.
The first quarter saw increased exports and government spending, and higher expenditures on food and fuel. Consumer and household spending rose slightly, but homebuilders slashed expenditures. Businesses added inventory but spent less on equipment.
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