Check the figures below.
This shows the frightening, manipulated way that the GDP figures are presented to the people. This actually means that they are totally meaningless because TWO-THIRDS of the GDP is Personal Consumption Expenditure. This means that if the gov. gives $5bn to seniors in the country and they spend it all (Which seniors will mostly do !! And exactly as was done by our Labor Gov. at some point recently – to reduce the effect of the recession) then the GDP would go up $5bn. How artificial can you get?? There is absolutely no PRODUCTIVITY involved in that action but the GDP reflects an additional $5bn. So the current state of the nation IS NOT ACTUALLY REFLECTED BY GDP at this time. Furthermore this is exacerbated by the fact that money ( as printed by the Treasury ) is no longer backed by gold.
I always believed that the Personal Consumption bit was the $ of Goods PRODUCED, MANUFACTURED, FARMED and MINED plus SERVICES PROVIDED (and taxed by GST!!!). This would be true PRODUCTIVITY.
This information provided shows the numbers that are fed to the people. They are not based on economic reality but on political expediency. Note that the Personal Consumption Expenditure is inhibited by Income Tax BUT lowering Income Tax (which gives people more money to spend) directly REDUCES the government General Revenue.
I have a lot of research to do on this one. Will keep you informed.