Comment by gruez

Comment by gruez 2 days ago

1 reply

Not sure what podcast you're talking about, but since we're trading vague recollections, my recollection was opposite. Manufacturing as % of GDP certainly went down, but gross value added did not.

Also, hedonic adjustments are typically applied to CPI figures, not figures like GDP or value added, so I suspect you have some facts crossed.

mlyle 2 days ago

Note I think this evidence and discussion is all ambiguous, but hedonic adjustments absolutely affect real GDP.

When comparing to a past year's GDP, you need to make an adjustment for the differing value of money, and you can't calculate the differing value of money without considering the changes in the qualities of what you can buy with it.