J.M. Keynes versus J.-B. Say – Globe Asia – July 2014

In this Globe Asia article, Professor Steve Hanke, reports that the US Department of Commerce is to start reporting gross output (GO) in addition to GDP and why this is important. The following are excerpts from the article: 

“In late April of this year, the Bureau of Economic Analysis (BEA) at the U.S. Department of Commerce announced that it would start reporting a new data series as part of the U.S. national income accounts. In addition to gross domestic product (GDP), the BEA will start reporting gross output (GO). This announcement went virtually unnoticed and unreported –– an unfortunate, but not uncommon, oversight on the part of the financial press. Yes, GO represents a significant breakthrough.

A brief review of some history of economic thought will show just why GO is a big deal. The Classical School of economics prevailed roughly from Adam Smith’s Wealth of Nations time (1776) to the mid-19th century. It focused on the supply side of the economy. Production was the wellspring of prosperity.”

To read the full article click here