Economists cautioned against changes to the current national accounts structure: “I don’t think the stock market, the financial markets would like that,” said Sung Won Sohn, finance and economics professor at Loyola Marymount University.
Sung said looking at the private sector alone would not give the full picture on growth.
“Economic growth over time would become a lot more volatile. The reason is, when the economy slows or, when we are in a recession, for example, the government spends a lot of money,” he said.
Source: Reuters
U.S. Commerce Secretary Wants to Remove Government Spending from GDP
