If you throw all the products we buy and the services we use in one basket, then add up the price tag, that's the Gross Domestic Product, which is the primary metric economists use to assess the economic health of a country or region.

The easy part of calculating GDP is the calculation itself: C+I+G+(X-M)=GDP. Got it? No? Well, add Consumption, Investment by companies, Government purchases, and then take the product of eXports (calling it 'E' would lack sexiness) minus iMports ('I' was taken). Viola! GDP.

Still don't get it? Well, knowing the components helps. Consumption is the biggest component, and it's a tally of the cost of all the goods and services we buy. Investment is what companies spend on the real assets they own, plus the value of the inventory that we haven't gobbled up through consumption. Government purchases are what the Feds pay money for (whether it be highways or fighter jets, though big social programs, like welfare, aren't counted). And then we calculate the difference between the goods and services we¿re sending to other countries and the stuff we're bringing in.

Good. That explains it, except there's a catch. Inflation has a habit of distorting the numbers, so economists talk about either Nominal GDP or Real GDP. In fact, Real GDP isn't necessarily "real" for most folks, since it takes any inflation out. Nominal GDP includes the effects of inflation. (There's something called the implicit price deflator which is a calculation using the two, but we'll spare you the details.)

So, now that we know GDP, why do we want to? Well, it's good to compare different markets. And watching the trend shows whether a given economy is growing (good), stagnating (not so good), or shrinking (very not so good). When GDP goes down two quarters in a row, we're officially in a recession.

For the record, GDP is released at the end of each month, with most reporting ¿preliminary¿ data for the previous month. But you won't get final GDP numbers for the fourth quarter of a year until the very end of the first quarter of the next year. After all, it's not an easy number to calculate.

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Monday, September 08, 2008

Campbell Brown Sparks a McCain-media Firestorm

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Jon Friedman

MarketWatch

NEW YORK -- CNN anchor Campbell Brown didn't intend to trigger a firestorm at the Republican National Convention.

But she did anyway.

Shortly after Sen. John McCain tapped Sarah Palin as his running mate, Brown directed pointed questions to Tucker Bounds, a spokesman for McCain's campaign, about the qualifications of the little-known Alaska governor.

As the Los Angeles Times pointed out: "Tensions -- and voices -- rose after the anchorwoman told Bounds that she was just 'trying to get someone from the campaign to explain what foreign policy experience [Palin] has.' Bounds repeatedly skirted the question, choosing instead to criticize Barack Obama's lack of executive experience."

"It's surprising," Brown said of the ensuing controversy when we spoke by phone last Thursday afternoon. "It's what we do. I'm a journalist. My role and responsibility go beyond a job. It's a duty, an obligation. We're here to ask tough questions in a responsible way."

Brown set off a fiery dialogue between Republican politicians and the media. John Mercurio of the National Journal wrote from the site of the convention: "Listening to Republicans here this week, it's hard to know whether John McCain is running against Barack Obama or this evil creature they like to call the "East Coast liberal media elite." The problem wasn't the message; it's a time-honored strategy for Republicans to accuse the media of liberal bias."

McCain's campaign said Brown's interview of Bounds had been "over the line," and it canceled McCain's scheduled appearance on "Larry King Live," according to a report on the Huffington Post. (The cancellation seemed like a foolish decision, as King has a sizable audience and is notorious for lobbing softball questions.)

Then, Bounds took a more conciliatory approach (some cynics might call it "flip-flopping," of course) at the CNN Grill in St. Paul, the network's convention headquarters. He called Brown a "consummate professional" and said he was "an enormous fan" of hers.

For her part, Brown shrugged off the flap and remained philosophical. "This is a tough campaign and people are especially sensitive," she said. "These were not 'gotcha' questions. That interview was pretty straightforward."

I asked Brown when she realized that she'd become infamous. She laughed and said, "When my phone started ringing off the hook and I got over 1,000 emails in my personal email account. That's when I realized this had struck a nerve."

Brown said she was "encouraged" to see that viewers were "engaged in the process and wanted to learn" more about it, and she characterized most of her incoming email as "supportive."

Brown, who left NBC News (GE) last year and joined CNN (TWX) said she doesn't hold a grudge when a politician or a spokesperson gives her a hard time. "I don't take it personally. I'm doing my job. He has a job to do, too," she explained. "They have to recognize what we do. I'm not going to accept what they say at face value."

Like many Americans, Brown is fascinated by Palin's rise and her appeal. Since Palin became an overnight media sensation, everyone wants to understand what makes her tick.

"There is still a lot that I want to learn about her," Brown said. "She delivered a great speech, but we have to get beyond it. I don't know where she is at, from a policy standpoint. I'm wildly curious about her presence and how her dynamic will change the race. She is introducing work and life issues for women into the campaign."

Brown would welcome an opportunity to sit down and talk with Palin. The vice-presidential nominee and the hard-hitting journalist might have more in common than Republican strategists suspect.

It would be interesting to watch that interview. Brown is married to Fox News contributor Dan Senor and is the mother of an infant. She appreciates the sacrifices that Palin has made for her professional career. In fact, Brown's pregnancy delayed her debut on CNN.

In my naivet�, I earnestly asked Brown what her first question to Palin would be. The notion struck her as so ludicrous that she had to laugh.

"Do you honestly think she'll give me 15 minutes after all of this?" Brown asked with a chuckle. "Let's have a little reality check here."

MEDIA WEB QUESTION OF THE DAY: Do you think journalists secretly hold grudges against people who treat them badly?

MONDAY PET PEEVE: Bloomberg News recently got a lot of abuse when one of its editors mistakenly published a prepared obituary of Apple Computer's (AAPL) Steve Jobs. This sort of snafu happens all the time in the journalism world, but Bloomberg seemed to get more than its share of criticism. It wasn't exactly fair. Journalists should be more tolerant when one of their brethren goofs up.

READERS RESPOND to my column about CBS' (CBS) Katie Couric:

"I'm in agreement with you. Katie Couric has taken way too many shots from angry, cynical people from the start. She didn't stand a chance. I like her. I'm going to continue to watch -- if for nothing else, to support a woman. The bottom line is this: We are a sexist country, pure and simple. Men are deathly afraid of women. Look at Hillary, not even a whiff of the VP nomination. Never even come close to having a woman vie for the presidency, and many others."

-- Kevin McIntosh

Feel free to send email to jfriedman@marketwatch.com or join the online community of Media Web readers by posting comments directly to the MarketWatch.com site.