New data to 'rewrite economic history'

Well, that's a relief. For a while there I thought our economy was tanking while growing at a rate of less than 2%. Never fear. The government is about to wave a magic wand and add 3% to our GDP growth. Financial Times: 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. "We are carrying these major changes all the way back in time - which for us means to 1929 - so we are essentially rewriting economic history," said Mr Moulton. The...(Read Full Post)