Trajan
conscientia mille testes
talk about pulling a rabbit out of the hat, Obama is one lucky bastard..........so the shitty 1.% or 1.4% we are due will it appears be buoyed by R&D accounting etc...read the article....
GDP to Get Bigger, Not Necessarily Faster
snip-
The most notable change will be measuring the value of research and development investment by companies and the government. The new practices mean, for example, that a pharmaceuticals companys spending on research for a drug will be included in GDP. Under current practices, such spending is considered intermediate and isnt included in GDP calculations. Government spending on research and development for example, for state-of-the-art avionics already largely is included in GDP calculations, Ms. Kelly said. That is because most government research and development isnt sold and cant be measured as bottles of medicine can.
The shift to the new accounting has been in the works for some time, with the BEA working on satellite accounts to estimate the effect of the changes. In a BEA paper published last month, analysts said that based on preliminary estimates for 2007, the shift to recognizing research and development as investment would raise the level of GDP by about 2%, or about $300 billion, with about two-thirds coming from private fixed investment and the remainder primarily coming from government consumption expenditures.
The second accounting change involves recognizing business investment in artistic endeavors, such as long-running television shows, theatrical movies, books, music and assorted other works. That means, Ms. Kelly said, that a studio recording of a music album would now be valued and included in GDP. Before, the GDP formula would include not the value of the original work, but rather that of the CDs or other reproductions of it. The BEA didnt quantify how much this change would affect GDP, but noted in its March paper that private investment in entertainment originals for 2007 is estimated at about $70 billion. The Bureau broke down that new-investment tally as roughly one-third for movies, one-third for television programs and one-third for other entertainment assets.
more at
GDP to Get Bigger, Not Necessarily Faster - Real Time Economics - WSJ
or-
The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.
Billions of dollars of intangible assets will enter the gross domestic product of the world's largest economy in a revision aimed at capturing the changing nature of US output.
Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.
BEA Will Change The GDP Calculation To Boost Economy By 3% In July - StreetTalk Live
GDP to Get Bigger, Not Necessarily Faster
snip-
The most notable change will be measuring the value of research and development investment by companies and the government. The new practices mean, for example, that a pharmaceuticals companys spending on research for a drug will be included in GDP. Under current practices, such spending is considered intermediate and isnt included in GDP calculations. Government spending on research and development for example, for state-of-the-art avionics already largely is included in GDP calculations, Ms. Kelly said. That is because most government research and development isnt sold and cant be measured as bottles of medicine can.
The shift to the new accounting has been in the works for some time, with the BEA working on satellite accounts to estimate the effect of the changes. In a BEA paper published last month, analysts said that based on preliminary estimates for 2007, the shift to recognizing research and development as investment would raise the level of GDP by about 2%, or about $300 billion, with about two-thirds coming from private fixed investment and the remainder primarily coming from government consumption expenditures.
The second accounting change involves recognizing business investment in artistic endeavors, such as long-running television shows, theatrical movies, books, music and assorted other works. That means, Ms. Kelly said, that a studio recording of a music album would now be valued and included in GDP. Before, the GDP formula would include not the value of the original work, but rather that of the CDs or other reproductions of it. The BEA didnt quantify how much this change would affect GDP, but noted in its March paper that private investment in entertainment originals for 2007 is estimated at about $70 billion. The Bureau broke down that new-investment tally as roughly one-third for movies, one-third for television programs and one-third for other entertainment assets.
more at
GDP to Get Bigger, Not Necessarily Faster - Real Time Economics - WSJ
or-
The US economy will officially become 3 per cent bigger in July as part of a shake-up that will see government statistics take into account 21st century components such as film royalties and spending on research and development.
Billions of dollars of intangible assets will enter the gross domestic product of the world's largest economy in a revision aimed at capturing the changing nature of US output.
Brent Moulton, who manages the national accounts at the Bureau of Economic Analysis, told the Financial Times that the update was the biggest since computer software was added to the accounts in 1999.
BEA Will Change The GDP Calculation To Boost Economy By 3% In July - StreetTalk Live
