Another economic scandal is variation that Trump must face

There is another one A scandal involving critical government statistics on the economy.

They are all focused on the awful state that the Federal Government calculates job creation. The work of the work statistics (BLS) has just released drastic audits created for the 12-month period ending in March this year. The work growth was revised nearly a million jobs, less than half of tax affairs. Talk about the Colossonal Miss!

Serious questions are increasing on the reliability of other government economic data.

But there is another huge problem that includes as measured the size of the economy, gross domestic product (GDP). The offense is not the integrity of the number of GDP, but that there is a better, more comprehensive, more enlightened diagnostic tool for measuring the real economy of the economy.

The scandal is that for political reasons, this metric buried office for economic analysis (BEA). You have to dig deeply to find it in the statistical guts of this agency. Bea refuses to free the number when releases the GDP data. Instead, you have to wait a few months.

Why? Since superior metric, gross exit (go), gives a lie dogmas for consumer consumption to drive economy. We are always told that consumer costs are 70% of the overall economic activity. Not correct: It turns out that the business sector (B2B consumption) is almost twice as much as consumer spending.

B2B Sales and business investments are what they produce prosperity and enable a greater standard of living. They emphasize the insanity of more taxes, regulations and government mandates. It’s a message a lot of politicians and economists don’t want to hear.

They must not discard the awful name “Gross Exit”. Actually a picture of a far more precise picture of how things stand. GDP measures the final sales in the economy, closing the eyes to what is happening in the production of products and services. In contrast, go into account consumption in all phases of production. GDP practically ignores business selling towards work. Like the supply chains do not exist.

In the real world it’s not right. Consumers cannot consume if things are not made and offered on the first row. Without commercial investment, companies cannot expand. Research and productivity more. Revenues stagnate. Entrepreneurs cannot create and innovate.

In essence, the difference between GDP and go the difference between X-rays and Cat scans.

Eminent economist Mark Skausen, who was relentlessly pushed the importance of Go, points out that this metric not only not only a true picture of the economy, but also a better predictor of what is ahead of us. It does not care that it will go to GDP numbers at the same time, and go to be treated equally, if not superior, GDP.

Although it comes to many economic and political holy cows, show Clown in the BLS provides the perfect opening of the Trump team to go on it. This will be a political and economic revolution.