Report Card for Donald Trump

[Mikebert]

(01-02-2017, 10:51 AM)Warren Dew Wrote: Warren Dew
That's not how GDP works.  GDP is a measure of final goods and services; intermediate goods and services used to produce those final goods and services aren't counted.  When technological advances mean some of those intermediate goods and services are no longer needed and their cost can be saved, that in itself doesn't change GDP at all.

The reduction in inputs does reduce the revenues of the source of the inputs, which reduces their employment and income.  This in turn negatively impacts aggregate demand, which feeds back in GDP.