People are always throwing GDP around as a measurement of growth. But as near as I can tell in computing GDP economists don't take into account borrowing. So if government (or some private business) borrows a lot of money to produce things GDP jumps. But that seems to me to artificial growth. GDP should not take into account the amount of production (or consumption) that was in fact funded by borrrowing from future income.
Anybody out there know if GDP Computation takes into account borrowing?
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Betsy Raymond, recent Wellesly grad, informs me my surmise is correct, GDP does not include debt.
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