Government Spending May Become Excluded from GDP

Commerce Secretary Howard Lutnick said government spending may become excluded from reports of Gross Domestic Product, which would obscure the impact of rampant slashing by Elon Musk’s “Department” of Government Efficiency.

DOGE is a subset of a White House IT team, not a government department.

GDP reports normally include government spending, not only for transparency but because it is intimately woven into the rest of the economy through taxes, contracts and financing of deficit spending.

Musk’s mass firings of federal workers and cancellations of contracts are causing ripple effects, forcing private businesses and charities to cut back or shut down, and reducing money flows through the economy. Excluding government spending from GDP would hide the extent to which Musk is responsible for contraction of the economy that is already showing up in economic data.

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