Reason #47: GDP - Our Gross Disgusting Product

When people talk about “the economy,” they usually mean our Gross Domestic Product, or GDP. Put simply, the GDP is the total dollar figure for everything we spend money on, from soccer moms buying soy lattes to the federal government forking over billions for fighter jets to business tycoons constructing new factories.

How can we be growing economically as a nation if so many Americans are sinking deeper and deeper into debt?

Politicians and economists act like the GDP number is the best and only way to gauge our nation’s financial health. But as with all government statistics, numbers can be as slippery as the people spouting them-and the GDP is no exception.

More than two-thirds of the value of our GDP now comes from consumer spending. In other words, the more we shop, the higher our GDP goes and the better our economy appears to be doing. But GDP doesn’t distinguish between deficit spending and responsible purchasing. And with real wages stagnant in this country for decades, most Americans are using credit cards and other forms of borrowed money to fund their consumption. Yet the GDP absurdly counts this rising ocean of red ink as “growth!”

How can we be growing economically as a nation if so many Americans are sinking deeper and deeper into debt? That’s like saying an already obese diabetic is getting “healthier” because his waistline keeps expanding!

NEXT: Reason #48: The Sick Cycle of Consumerism