“Can someone explain to me - in laymans terms - how the GDP is calculated? I feel like Im reading Pravda. My eyes and my wallet are telling quite a different story. I know food prices have gone through the roof - would that account for a rising GDP?”
GDP= G + I + C + (e-i)
Government spending + Investments + Consumption + (exports -imports)
Right now, our economy is almost completely reliant on the government spending component, which is all borrowed money.
Regulation has killed Investments, Obamacare has killed employment which has killed Consumption.
This is an ongoing shift from a mostly Consumption economy to a mostly Government spending economy.