Commerce Secretary Howard Lutnick said Sunday that government spending could be separated from gross domestic product reports in response to questions about whether the spending cuts pushed by Elon Musk’s Department of Government Efficiency could possibly cause an economic downturn.
Doing so could potentially complicate or distort a fundamental measure of the U.S. economy’s health. Government spending is traditionally included in the GDP because changes in taxes, spending, deficits and regulations by the government can impact the path of overall growth. GDP reports already include extensive details on government spending, offering a level of transparency for economists.
The commerce secretary’s remarks echoed Musk’s arguments made Friday on X that government spending doesn’t create value for the economy.
The argument as articulated so far by Trump administration officials appears to play down the economic benefits created by Social Security payments, infrastructure spending, scientific research and other forms of government spending that can shape an economy’s trajectory.
Lutnick said that the Trump administration would balance the federal budget with spending cuts, saying that would help growth and reduce the interest rates paid by consumers.
Posted by John3262005
10 Comments
Everyday I’m becoming more and more cynical at management and leadership in private sector companies
> Lutnick said that the Trump administration would balance the federal budget with spending cuts, saying that would help growth and reduce the interest rates paid by consumers.
Not sure if they’re stupid, or assuming investors are stupid. Because the federal budget is absolutely not getting balanced under Trump.
…then you’re not counting GDP.
Lmao, there it is.
Step 1 of the “let’s fudge the numbers” arc.
It would reduce interest rates for consumers if you would shrink the deficit. The government affects interest rates by borrowing money. You’re combining illegal spending cuts that have a very good chance of being reversed with tax cuts, effectively cancelling out the reduced spending. So this guy is likely knowingly lying.
I would simply not fuck things up so bad that fudging the numbers became desirable.
I am going to repeatedly smash my face in to a brick wall
Government spending doesn’t create value? I guess we should clawback all those green tax credits Tesla got. They seem like a waste. Also, that whole New Deal thing? Yeah, liberal lie believe it or not
We will still experience the recession / inflation other impacts even if they try to hide the numbers.
Economists, finance people, etc will still have their own data and information. The regular person will feel the job losses, issues with government services, etc
Why did I have to take AP Econ man….
Shoot the messenger, break the thermometer, etc