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    GDP: I Do Not Think It Means What You Think It Means

    Many decision makers and commentators treat gross domestic product (GDP) as if it measures the whole of the economy. They even use “the economy” and GDP interchangeably. GDP is an accounting device—and a poor measure of economic health. Household wealth is much closer to what we mean by “the economy.” … More

    GDP Report: Government Shrinks, Private Economy Grows

    Last Thursday’s revisions to the first-quarter growth estimates showed little change: Gross domestic product (GDP) had grown at a 2.4 percent rate, not 2.5 percent as reported in the initial estimate. For those who mistakenly equate GDP and “the economy,” this is bad news—and an excuse to kvetch about sequestration. … More

    GDP Grew 2.5 Percent in the First Quarter

    After dreadfully low growth in the last quarter of 2012—just 0.4 percent—gross domestic product (GDP) returned to a healthier rate of growth of 2.5 percent in the first three months of 2013. The autumn’s drop in private inventories was reversed as companies stockpiled more goods in anticipation of future consumer … More

    Trade Agreements Can Advance Economic Freedom

    The United States is currently engaged in Trans-Pacific Partnership (TPP) trade negotiations designed to reduce barriers to international trade and investment. The latest text from these negotiations shows how trade agreements, if properly designed and implemented, help advance economic freedom around the world. Among other things, the draft text calls … More

    Obama Tax Hikes Will Balance the Budget (April Fool’s)

    In the ongoing debate over deficit reduction, President Obama and his colleagues in the House and Senate incessantly call for tax increases as if our budget problems persisted because of taxes being too low. If only the federal government could usurp more of taxpayers’ hard earned money, the line of … More

    Attention, Reporters: A Trade Deficit Is Not Bad

    The latest trade deficit figures are out, and, as always, most reports fail to accurately explain what these numbers mean. Consider the following widely reported statement: A narrower trade gap boosts growth because it means U.S. companies are earning more from overseas sales while U.S. consumers and businesses are spending … More

    America’s Double Jeopardy: Surging Debt and Waning Economic Freedom

    A new study on public debt presented at the recent University of Chicago Booth School of Business monetary policy forum in New York has highlighted “tipping point dynamics” that can occur to countries with high debt loads. The study entitled, Crunch Time: Fiscal Crises and the Role of Monetary Policy, … More

    Kosovo’s Independence Welcome, but Work Still to Be Done

    Republic of Kosovo’s Prime Minister Hashim Thaci, in his February 17 speech commemorating the 5th anniversary of the country’s independence, expressed pride in his country’s visible accomplishments, but noted appropriately his awareness that “we need to do much more.” Indeed. Despite notable reforms since independence, the foundations of economic freedom … More

    In Congress, a Welcome Desire for “Regular Order”

    As Members of Congress left town last week for the Presidents’ Day break, a refreshing and commendable sentiment followed them: nostalgia for the “regular order” of lawmaking. “Tired of watching as flailing leadership negotiations fail to produce any key legislation,” wrote The Washington Post, “senior lawmakers hope that a return … More

    Morning Bell: Why Should I Care About the U.S. Debt?

    You’re busy. So busy you barely have time to read these words. So why should you care about the us debt? Does it affect your life? Unfortunately, high government debt is having more of an impact on each of us than we realize. Heritage’s Romina Boccia explains that high levels … More