[Related to the Apply the Concept on page 260] During
an interview with a reporter, former Microsoft CEO Steve
Ballmer discussed the data compiled on the usafacts.org
Web site. Ballmer asked if the reporter knew how many
people the government employed and provided the
answer: “Almost 24 million. Would you have guessed
that?”
a. Is local, state, and federal governments spending on
salaries and benefits for these employees considered
production as measured by GDP? Briefly explain.
b. According to data on the usafacts.org site, in 2014 the
federal government spent $57.3 billion on Social Security payments to retired and disabled people. Is this
federal government spending considered production
as measured by GDP? Briefly explain.
Source: Andrew Ross Sorkin, “Steve Ballmer Serves up a Fascinating
Data Trove,” New York Times, April 17, 2017.