A point I neglected to make is that while private sector compensation is not included in the GDP calculation, government compensation is. So if an engineer loses his job at IBM but gets hired as a janitor at the Pentagon, the GDP will go up by the amount of his government salary. WIth this new change, now the GDP will also go up if he get hired to pick up trash on a movie set!
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Actually I mispoke. The monthly premium on the major medical policy my father sold in the 1960s was only $2 per month, not $5. Adjusted for inflation, that would be about $20 per month in today's dollars.
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