Trump Weighs GDP Shift: Exclude Spending, Fuzzy Picture

The Trump administration is considering a significant change to the way it calculates the U.S. Gross Domestic Product (GDP), which could potentially obscure the impact of government spending cuts. According to sources familiar with the matter, the administration is exploring the possibility of excluding government spending from the GDP calculation, a move that could significantly alter the economic picture and make it more difficult to assess the true impact of fiscal policy.

This proposed change comes as the Trump administration is pushing for significant cuts to government spending, including reductions in non-defense discretionary spending. By excluding government spending from the GDP calculation, the administration could potentially make it appear as though these cuts are having less of an impact on the economy than they actually are.

Economists have expressed concern about the potential implications of this change. "Excluding government spending from the GDP calculation would make it more difficult to understand the true state of the economy and the impact of fiscal policy," said one economist who wished to remain anonymous. "It could also make it more difficult to hold the administration accountable for its fiscal policies."

However, some administration officials have argued that excluding government spending from the GDP calculation would provide a more accurate picture of the private sector's contribution to economic growth. "Government spending is not a driver of economic growth," said one official. "Excluding it from the GDP calculation would provide a more accurate picture of the true state of the economy."

It is unclear at this time whether the Trump administration will ultimately decide to exclude government spending from the GDP calculation. However, the mere consideration of this change has sparked a heated debate among economists and policymakers about the appropriate way to measure economic growth and the role of government spending in the economy.