Reply #4: A Few Problems

[ProfessorGAC]

First, 3.4% growth is not that good. It's not officially recessionary, but it's not good. Secondly, the growth is propelled by high gas prices and by excessive governmental spending with borrowed funds.

Lastly, since total inflation (including direct energy and food) is almost 4% annualized, then the growth is fueled also by inflation. (Consumption is about 70% of GDP, so 4% of 70% is 2.8%, or 82.35% of this growth number.)

The focus on the wrong metrics has become so ingrained in economic observers and reporters, and in many economists (although not the econometricians and economic modelers) that these statistics, unconverted to parameters and lacking dimension or context, are accepted as critical values.

They're not.
The Professor