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News in English (USA) / 04.03.2025 / 17:00

Concerns Rise Over Potential Exclusion of Government Spending from GDP Calculations

The Trump administration is considering a controversial proposal to exclude government spending from GDP calculations, a move that has raised fears among economists and experts. Commerce Secretary Howard Lutnick has suggested this change, claiming it might provide a clearer picture of the economy amid slowing growth projections. Critics argue that such adjustments could significantly obscure the true impacts of economic policies, particularly in relation to initiatives like DOGE cuts. While some advisors propose rethinking GDP measurements to avoid recession, many believe that excluding government expenditure would not yield substantial benefits and might distort economic statistics instead.
The New York Times, The Washington Post, Marketplace, Axios, The New Republic, American Enterprise Institute, The Post and Courier, Econlib, LongPort, The Times of India