Quote:
Originally Posted by aceventura3
"Nominal GDP growth is meaningless", if true why did Obama include it in his budget?
I think you stated what I wrote was a lie. It is not. Your position is now one of playing semantics. Regardless of inflation (which many dispute the accuracy of anyway) growth is growth.
---------- Post added at 08:43 PM ---------- Previous post was at 08:43 PM ----------
Is what I did name calling, or is it truth?
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I am sorry, but you don't understand the difference between nominal growth and real growth, do you?
Budgets will always include "nominal" gdp because they are the budget for the current year. The reason they also forecast inflation for the following years is precisely because they recognize that nominal figures for any year other than the current year is meaningless.
Nominal GDP growth is not economic growth, it simply means that the price of the goods and services produced in a given year went up. To put it in as simple manner as possible: the Obama administration has assumed that economic production this year will go down by 1.2%. To say that the Obama budget forecast economic growth this year is a lie, it is as simple as that.