The Revisionist National Income And Product Accounts

The Bureau of Economic Analysis has revised the National Income and Product Accounts all the way back to 1928.  With the release of Q2 GDP, Gross Domestic Product magically added $559.8 billion to 2012 GDP in current dollars.  Additionally the chained dollar base year was changed from 2005 to 2009, a very funky year where some deflation from 2008 was still present.

A Research Tax Credit Won't Create Jobs

President Obama is proposing a $100 Billion Research tax credit. The problem is this won't create jobs.

President Barack Obama, focusing on ways to spur economic growth with less than two months to the congressional elections, will urge Congress to permanently extend and expand a research and development tax credit for businesses.

Obama will detail the plan, which would cost about $100 billion over a decade, in an economic speech Sept. 8 in Cleveland, according to two administration officials speaking on condition of anonymity.

Once again, it is manufacturing of scale that is needed. That means curtailing offshore outsourcing, confronting China on their currency manipulation, modifying trade policy and offering tax incentives with strict conditions enforced, that companies manufacture in the United States.

R&D is all well and good. I am in R&D so a tax credit is especially nice for me. But hiring a few researchers in the U.S. is simply not going to generate 7 million jobs, especially when the results of that research, production, will be offshore outsourced to China and India.