Errors in Palladium's "How GDP Hides Industrial Decline
10 hours ago
- #manufacturing
- #economic critique
- #GDP
- The article critiques Patrick Fitzsimmons' Palladium piece on GDP and manufacturing decline, highlighting numerous flaws in his arguments.
- Fitzsimmons' critique of GDP calculation methods is described as confused, lacking empirical backing, and often contradictory.
- The response dismantles Fitzsimmons' examples, such as discrepancies in motor vehicle and semiconductor output, showing they don't support his claims.
- Fitzsimmons misunderstands the difference between gross output and value-added output, leading to incorrect conclusions.
- The article refutes Fitzsimmons' claims about per-capita manufacturing output decline, showing data inconsistencies.
- Fitzsimmons' arguments against quality adjustments in economic metrics are countered with evidence of their validity and necessity.
- The response highlights Fitzsimmons' circular reasoning and lack of systematic analysis in his sectoral decline claims.
- Fitzsimmons' skepticism of international trade is criticized as unrealistic and economically unsound.
- The article concludes that Fitzsimmons' arguments are fractally wrong, lacking coherence and empirical support.