I wish I were able to manipulate facts like the present administration and make myself believe that I have a million dollars in my bank account.
That's too much of a stretch for me but not for the government. They have now developed a new set of criteria for figuring out the GNP and the economy's rate of growth over each quarter.
According to a story by Neal Asbury in Money News, the administration has changed the rules it uses to calculate economic growth.
The author's analogy is of a blackjack player being dealt an ace and jack of spades and quickly declaring blackjack, but then the dealer states that the winning hand is now 30 and they lose.
This is the kind of chicanery that the administration is beginning to use to "cook the books" to make the economy look better that it is.
From now on the Bureau of Economic Analysis will include money earned from creative works, including movies, television shows, books, theater and music.
In addition, money spent on research and development, which was previously considered a cost of doing business, will now be included.
This fits right in to the administrations mantra that people who stopped looking for work were no longer considered unemployed, thus lowering the unemployment rate while 25 million people are still unemployed or underemployed.
Extrapolating that thought, when everyone stops looking for gainful employment the unemployment rate will be zero.
After every set of numbers is announced, the administration goes back later to recalculate them because of some discrepancies.
Hence 30 now becomes the winning score in blackjack!
However, now the new calculation is based on the value of U.S. intellectual property, which is under attack by China, Russia and India.
It is claimed that China is responsible for 80 percent of IP theft, which equates to $300 billion a year.
The attack on IP poses a significant threat to U. S. economic growth. At least 18 million Americans are employed in IP related industries and it is estimated that 750,000 jobs are lost due to IP theft.
According to Mr. Asbury, IP related industries account for over one-third of GDP.
The U.S. IP is currently valued at approximately $5.5 trillion and accounts for more than half of all U.S. exports and drives 40 percent of our economic growth.
Reports by independent groups fault the administration for not taking aggressive action to stem the tide of IP theft.
Once again, by not taking a stand to take action to curb IP theft, what the administration does is change the numbers.
Once again 30 equals 21; or does it?