I have a question about the defense spending in the GDP.

[alcuno]

Today's report said that defense spending is unchanged. In the second quarter, defense spending rose 45.8% over the first quarter of the year. If defense spending is unchanged, doesn't that mean that it's still 45.8% over the first quarter? Wouldn't an increase in the third quarter have to have been over the 45.8% increase in the second quarter?

[DUreader]

1. I think that is correct, except for off the books spending

[girl gone mad]

2. AFAIK, yes. n/t

[unblock]

3. the government's DIRECT spending didn't increase

so the government didn't DIRECTLY contribute to the 3q03 gdp.

however, 2q03's insanely huge hike is now filtering through the defense industry, adding to the economy.

plus, the government probably is continuing to spend more on defense, but are calling it something different....