>Might be true, but we were talking about GDP. GDP is production. Imports are not included in GDP, so an increase in imports doesn't cause GDP to go down.
Imports cause GDP to go down relative to C+I+G. Full stop. I'm sorry I didn't say "relative to economic activity which should be the true measure of a recession" but again, that's why I call you a pedant.
>Wrong, because math. Spending is up equal to the amount of imports increasing, so there is no effect on GDP.
Yes, but GDP is down relative to C+I+G because of imports. Why are you being so stubborn about that? And honestly, what's the Venn diagram of people who bring up D-K and those who suffer from it? Like ad hominen is a universal sign of intelligence, right?
>You are conflating an increase in imports with a decrease in domestic spending. Trade is not zero sum.
Answer my question about selling debt/assets please. Are those in GDP? Or can you sell things that aren't "produced" by GDP?
Imports are included in C+I+G, so when imports increase, C+I+G also increases. But the goal of calculating GDP is to exclude imports, so imports are subtracted from the total. Therefore there is no effect on GDP from increased imports.
You were wrong when you said GDP decreased because imports increased, which is how this started. That's not being pedantic, that's correcting a misunderstanding of the how GDP works.
Don't feel bad, this is very commonly misunderstood and misreported, so you have company. People see the "- Imports" at the end of the equation and think they understand imports subtract from GDP. Easy but naive mistake. It's your confidence in your misunderstanding that pushes it into DK territory. Your unwillingness to read or comment on the Fed's own explanation of this is a little shocking though.
Imports cause GDP to go down relative to C+I+G. Full stop. I'm sorry I didn't say "relative to economic activity which should be the true measure of a recession" but again, that's why I call you a pedant.
>Wrong, because math. Spending is up equal to the amount of imports increasing, so there is no effect on GDP.
Yes, but GDP is down relative to C+I+G because of imports. Why are you being so stubborn about that? And honestly, what's the Venn diagram of people who bring up D-K and those who suffer from it? Like ad hominen is a universal sign of intelligence, right?
>You are conflating an increase in imports with a decrease in domestic spending. Trade is not zero sum.
Answer my question about selling debt/assets please. Are those in GDP? Or can you sell things that aren't "produced" by GDP?