Publisher’s Note: We’d typically send you a watchlist idea from Nate Bear today, but with markets closed for Good Friday, we’re sharing something different.

SpaceX is moving toward an IPO. The valuation numbers being floated are unlike anything we have seen from a private company. Before that happens, it is worth understanding the economic framework behind it.

In the essay below, Oxford Club Macroeconomic Strategist Dr. Mark Skousen explains why Gross Output — not GDP — reveals where real growth is happening, and why Musk sits at the center of it right now.

Dr. Skousen is hosting a free online event, Musk’s Master Plan X, on Wednesday, April 8, at 2 p.m ET.

Register here to save your spot.

— Stephen Prior, Publisher

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When most people think about the economy, they think about GDP.

You hear it on the news… from politicians… from economists.

“GDP grew 2%.” “GDP is slowing.” “GDP is the measure of economic health.”

But here’s the truth:

GDP only tells part of the story.

In fact, it leaves out the most important part.

Years ago, I developed a broader measure called Gross Output (GO) – a statistic now officially published by the U.S. Bureau of Economic Analysis.

And I like to call it what it really is:

The “top line” of the economy.

If GDP is like a company’s net income…

Then Gross Output is like its total revenue.

And any good businessperson will tell you…

You can’t understand a business by looking only at the bottom line.

You need to see the whole picture.

Why GDP Misses the Real Economy

GDP focuses primarily on final goods and services – what consumers buy at the end of the production chain.

But it largely ignores what happens before that final sale.

It ignores the factories… The supply chains… The raw materials… The intermediate production that makes everything possible.

Gross Output captures all of it.

It measures total spending across every stage of production.

And when you look at the numbers, the difference is staggering.

Today, U.S. GDP is roughly $31 trillion.

But Gross Output?

It’s over $63 trillion.*

More than double the GDP!

In fact, the business-to-business economy – the “production economy” – accounts for about 60% of total economic activity, while consumer spending makes up only around 40%.

In other words…

The real action is happening behind the scenes.

It’s happening in the building, making, transporting, and innovating that leads to finished goods.

That’s where growth truly begins.

The Entrepreneurs Driving Gross Output

This is why entrepreneurs are so critical.

They don’t just create products.

They create entire ecosystems of production.

When Rockefeller built Standard Oil, he didn’t just sell kerosene.

He created pipelines, refineries, distribution networks – an entire industrial machine.

When Henry Ford built the Model T, he didn’t just sell cars.

He transformed steel production, rubber manufacturing, glassmaking, and assembly processes.

When Steve Jobs launched the iPhone, he didn’t just sell a device.

He activated a global supply chain – from semiconductors to software to app development.

Each of these entrepreneurs dramatically expanded Gross Output.

They increased activity at every stage of production.

And that’s what drives real, sustainable economic growth.

Where We Are Today

Today, many analysts look at GDP and conclude that growth is modest… even uncertain.

But when you look at Gross Output…

You see something very different.

You see massive investment in infrastructure. You see supply chains being rebuilt. You see capital flowing into energy, manufacturing, and technology.

In short, you see the early stages of a new production boom.

And that’s where the real opportunity lies.

Because when Gross Output accelerates, it signals that businesses are gearing up for expansion.

They’re building capacity. They’re investing in new technologies. They’re preparing for future demand.

This is the foundation of the next economic wave.

Why Elon Musk Is at the Center of It All

And right now, there may be no individual on Earth driving more Gross Output than Elon Musk.

Think about what he’s building.

At Tesla, he’s not just producing electric vehicles.

He’s driving demand for batteries… lithium… semiconductors… manufacturing equipment… and energy infrastructure.

At SpaceX, he’s not just launching rockets.

He’s creating an entirely new space economy – satellites, communications networks, aerospace manufacturing, and global connectivity.

With Starlink, he’s building a worldwide internet system – requiring constant expansion: more satellites, more launches, more ground infrastructure.

And with his work in artificial intelligence and robotics, he’s pushing demand for data centers, chips, automation systems, and advanced materials.

Each of these ventures expands economic activity at multiple stages of production.

Each one fuels Gross Output.

And when you step back and look at the big picture…

Musk isn’t just participating in the economy.

He’s helping reshape its entire production structure.

The Multiplier Effect of Innovation

This is what makes entrepreneurs like Musk so powerful.

Their impact isn’t linear – it’s exponential.

Every factory built creates demand for materials. Every satellite launched creates demand for components. Every new technology creates entire industries around it.

Economists often call this the “multiplier effect.”

But I prefer to think of it as the expansion of Gross Output.

Because what we’re really seeing is more activity… more transactions… more production at every level.

And that is the true engine of prosperity.

What Comes Next

Right now, we are entering a period where multiple breakthrough technologies are converging:

Artificial intelligence… Advanced energy systems… Space infrastructure… Robotics and automation…

And Elon Musk sits at the center of all four.

That’s not a coincidence.

It’s the result of focusing on the production economy – the part of the system that Gross Output measures best.

And as these technologies scale, we’re likely to see a dramatic increase in economic activity across the board.

Not just in consumer spending…

But in the deeper, more powerful layers of the economy.

Why This Matters for Investors

If you want to understand where the economy is going…

Don’t just watch GDP.

Watch Gross Output, which includes the supply chain.

Watch where production is expanding.

Watch where capital is flowing.

Watch where entrepreneurs are building.

Because that’s where the next wave of growth – and opportunity – will come from.

And today, one of the biggest forces driving that expansion is Elon Musk.

His companies are not just delivering products…

They are fueling a massive surge in economic activity across the entire production chain.

Which means we may be standing at the front edge of something much bigger than most people realize.

A new era of production.

A new era of innovation.

And potentially…

A new era of extraordinary opportunity.

Your Action Plan

That’s why I encourage you to attend my free, online event –Musk’s Master Plan Xon Wednesday, April 8 at 2 p.m. ET.

During the event, we’ll dig into what may become one of the most important economic transformations of our lifetime.

The online event is entirely free to attend. Simply click here and enter your email address and phone number to register.

I hope to see you there.

Profitably yours, AEIOU,

Dr. Mark Skousen