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Q: is the gdp formula change a scam to make america look better and how will it affect china gdp?
starting in march, research and developement spending and film royalties will be added to gdp resulting in america showing 3 percent gdp growth for the first quarter. the economy still sucks and half the workers will be part time by the end of this year. will anybody be fooled by this. how will this affect china numbers. source deathstareconomics.com
13 years 16 weeks ago in Business & Jobs - China
Are you saying that China will lose face because the US changed how they arrive at a GDP number?
First, economics is perhaps one of the most esoteric systems of calculating worth. And do you think that the numbers China puts out are any kind of believable? I won't even go into what a silly idea that is.
But why shouldn't R&D and film royalties be included in GDP? They both are products that garner revenue. R&D is perhaps a tad more vague if you don't know accounting and how revenue recovery works, or how value is built.
Will this affect China numbers? Sure it will. Some officer, someplace will have to add a few zero's here and there to bolster China's perceived value.
China's GDP, like all it's economic indicators, are figures fabricated by China, and hugely overstated. The latest example is China's trade surplus, which Bank of America believes is overstated by 900%
