Posted by: seanmalstrom | June 26, 2014

US Economy is contracting

The revised GDP numbers are out: -2.9%.

GDP isn’t really a good indicator of the economy anyway due to one of the elements of GDP is government spending. Such spending becomes absurd when it is mostly debt. If the debt was twice as bad, the GDP would be ‘better’ but we’d all be much poorer for it. However, GDP tracking has a long history so it is useful only in a broad historical context.

For the longest while, I couldn’t find anything about the revised GDP numbers at Yahoo Finance. I became very concerned. Then, this story appeared: Why a grim US economic picture is brightening. Why the propaganda? It even tries to call the contraction only 2% when 2.9 is essentially the number 3.

This contraction would help explain Generation 8’s pathetic performance so far. It is why the Game Industry is hiding behind YOY percentages because it is easier to say there is a percentage increase in the year selling a ton of brand new hardware as opposed to last year when the hardware was seven years old.


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