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Commerce Secretary Howard Lutnick floated the notion on Sunday of excluding government spending data from the overall calculation of gross domestic product. Economists say such a move would be “nonsensical” and could erode confidence in U.S. economic data.
In an appearance on Fox News, Lutnick said that he wanted to remove government spending from the overall calculation of inflation-adjusted GDP. Public spending accounted for about a quarter of U.S. GDP in the government’s latest fiscal year, ended Sept. 30, according to estimates from the Congressional Budget Office.
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