Gross Municipal Product or "GMP" is basically Gross Domestic Product, but for cities. I only don't mention it as much as the data is a bit difficult to come by and isn't commonly cited. However, I remember a while ago looking up Detroit's GMP to see what I was sure to find a cratering drop.
It wasn't. Matter of fact, it hasn't cratered, but held steady, even rising in the past couple of years.
they decided to revamp how GDP was calculated.
This is a major concern I have with the economics industry. Since it is largely populated by academians and government economists, I don't trust them to be honest and employ the best methodologies when measuring the economy. I do trust them, however, to lie and taint their methodologies to have a political bias to favor more socialism. Regardless, this forces real, private sector economists to become tricky and use alternative measures that more accurately measure economic growth, wealth, etc. (for example, many economists will use electrical consumption instead of China's "official" GDP figures as they are prone to overstating GDP). And I'm afraid we may now have to do the same in the US.
However, sometimes you don't have to go so far as to be looking up electrical consumption or some alternative measure. Economists have made so many other statistical measures that invariably they will contradict each other giving government statistics their distinct fishy odor. For example manufacturing employment.
This is more in line with what I hear and see in other statistical circles. Stagnation during booming times and a precipitous crash during the recession. But the ultimate statistic that makes me question and no longer trust Detroit's GMP figures is the only thing that can cause economic growth - people. Namely, Detroit's population:
In the last decade alone it's population has shrunk by a fifth. However, it's GMP has increased by about 7% during that same time period. And even considering all the advances in technology and improvements in economic efficiency that has occurred in that time, I frankly don't believe Detroit's population is smart, educated, driven or capable enough to make those figures jibe.
Something stinks and it's the rosy picture the left keeps trying to paint of Detroit.
ht to MJ Perry for the chart.