Capitalism

SKOUSEN: Steve Forbes on the GO and I Make the Forbes 400 Richest Issue!

Charles Schwab and I have several things in common — we were born in California, we each have five children and we both made the latest “Forbes 400 Richest People in America” issue (to be released next week). He’s on page 129 as the #63 richest person in America, and I’m mentioned by name on p. 22 for my gross output (GO) model. (I took a more academic road to success.)

In this issue, Steve Forbes endorses my GO model, saying GO is a “far more comprehensive, realistic and enlightening picture than GDP. It’s like the difference between an X-ray and a CAT scan.”

GO measures spending at all stages of production, including the all-important supply chain, and gross domestic product (GDP) measures final output only. Big difference!

GDP is $21 trillion in 2019, while GO is over $45 trillion.

GO not only demonstrates that business spending is far more important than consumer spending, but it’s also a leading indicator. GO has slowed considerably in 2019, suggesting we are heading toward a mild recession.

In his column, Forbes takes the federal officials at the Bureau of Economic Analysis (BEA) to task for not releasing GO on a timely basis. It comes out three months later than GDP! (The next release is Oct. 29 for second-quarter GO.)

Forbes stated, “President Trump should immediately order the BEA to get off its duff and issue GO at the same time it does GDP.”

Good news! I’m pleased to announce that Brian Moyer, the BEA director, informed me that they plan to release both GO and GDP at the same time by next year… not unlike publicly traded companies issuing “top line” (sales) and “bottom line” (profits) every quarter. Economics finally has caught up to accounting and finance in the 21st century!

Steve Forbes’ column on GO is now available to read by clicking here.

Mark Skousen

Mark Skousen, Ph. D., is a professional economist, investment expert, university professor, and author of more than 25 books. He earned his Ph. D. in monetary economics at George Washington University in 1977. He has taught economics and finance at Columbia Business School, Columbia University, Grantham University, Barnard College, Mercy College, Rollins College, and is a Presidential Fellow at Chapman University. He also has been a consultant to IBM, Hutchinson Technology, and other Fortune 500 companies. Since 1980, Skousen has been editor in chief of Forecasts & Strategies, a popular award-winning investment newsletter. He also is editor of four trading services, Skousen TNT Trader, Skousen Five Star Trader, Skousen Home Run Trader, and Skousen Fast Money Alert. He is a former analyst for the Central Intelligence Agency, a columnist to Forbes magazine (1997-2001), and past president of the Foundation for Economic Education (FEE) in New York. He has written articles for The Wall Street Journal, Liberty, Reason, Human Events, the Daily Caller, Christian Science Monitor, and The Journal of Economic Perspectives. He has appeared on ABC News, CNBC Power Lunch, CNN, Fox News, and C-SPAN Book TV. In 2008-09, he was a regular contributor to Larry Kudlow & Co. on CNBC. His economic bestsellers include “Economics on Trial” (Irwin, 1991), “Puzzles and Paradoxes on Economics” (Edward Elgar, 1997), “The Making of Modern Economics” (M. E. Sharpe, 2001, 2009), “The Big Three in Economics” (M. E. Sharpe, 2007), “EconoPower” (Wiley, 2008), and “Economic Logic” (2000, 2010). In 2009, “The Making of Modern Economics” won the Choice Book Award for Outstanding Academic Title. His financial bestsellers include “The Complete Guide to Financial Privacy” (Simon & Schuster, 1983), “High Finance on a Low Budget” (Bantam, 1981), co-authored with his wife Jo Ann, “Scrooge Investing” (Little Brown, 1995; McGraw Hill, 1999), and “Investing in One Lesson” (Regnery, 2007). In honor of his work in economics, finance, and management, Grantham University renamed its business school “The Mark Skousen School of Business.” Dr. Skousen has lived in eight nations, and has traveled and lectured throughout the United States and 70 countries. He grew up in Portland, Ore. He and his wife, Jo Ann, and five children have lived in Washington, D.C.; Nassau, the Bahamas; London, England; Orlando, Fla.; and New York. For more information about Mark’s services, go to http://www.markskousen.com/