Comment: For a Good Start, use the GDP formula

(See in situ)

For a Good Start, use the GDP formula

I'm no economist but I've heard about Keynesian Economic theory changing the gross domestic product (GDP) formula. The formula has "Government Spending" ADDED into this formula.

See the link here:

Obviously, Dr. Paul and Peter Schiff discredit this formula. Government Spending technically could add to GDP if we didn't have a shadow gov't, military industrial complex and corrupt politicians. Or rather, we actually had an honest gov't. But instead, it simply misallocates resources that could be used elsewhere.

The simpler GDP formula should be calculated by subtracting total imports from total exports. This is a quick way to break down a Keynesian. For example, imagine using the Keynesian GDP formula for and individual's finances, by assigning a "spender" to that individuals budget and then adding those expenses back into the budget. It simply doesn't make sense. Hope this helps!