Intangible booms and busts

Michael Mandel

One of the really interesting things about putting intangibles into GDP is that the booms get bigger and the busts get deeper. Take a look at this chart (taken from the cover story). By my rough estimate, intangibles add about half a percentage of growth to the boom, and take off 3 tenths of a percent from growth in 2001. (these are very rough estimates).

I think in the end, this is a very volatile economy, not a smooth one.

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