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View Diary: Gross domestic product grows 2.8% in third quarter, more than expected, but with underlying weakness (12 comments)

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  •  I'm having an increasingly hard time understanding (0+ / 0-)

    why the bottom 90% of us are supposed to care very much about the GDP.

    We haven't seen a piece of its growth since 2007

    "But the traitors will pretend / that it's gettin' near the end / when it's beginning" P. Ochs

    by JesseCW on Fri Nov 08, 2013 at 07:51:59 AM PST

    •  Unemployment is high because GDP growth is low (0+ / 0-)

      lower unemployment increases the total income of the lower 90%.  

      Incomes for the lower 90% typically increase faster when unemployment is low.

      The well being of the lower 90% is hurt by weak economic growth.

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Fri Nov 08, 2013 at 09:34:50 AM PST

      [ Parent ]

      •  GDP has grown greatly in the last 5 years (0+ / 0-)

        with very little corresponding job growth.

        90% of those net jobs that have been created are very low wage service jobs.

        This is not the 1970's.

        "But the traitors will pretend / that it's gettin' near the end / when it's beginning" P. Ochs

        by JesseCW on Fri Nov 08, 2013 at 06:59:39 PM PST

        [ Parent ]

        •  What data are you looking at? (0+ / 0-)

          The most useful standard GDP metric for a topic like this is real per capital GDP growth.  For the past 5 years this has been exceptionally week.

          This is especially weak considering that after a recession the economy usually goes through growth much faster than usual. This unfortunately has not happened the past 5 years.

          See http://data.worldbank.org/...

          The most important way to protect the environment is not to have more than one child.

          by nextstep on Fri Nov 08, 2013 at 10:41:32 PM PST

          [ Parent ]

          •  GDP is beyond pre-crash levels. (0+ / 0-)

            Employment is nowhere near pre-crash levels.

            Every recession of the last 30 years has left us with fewer living wage jobs when the "recovery" was over, even as GDP has climbed higher and higher.

            This isn't new

            http://www.theatlantic.com/...

            GDP has become decoupled from US employment.  

            Productivity has continued to skyrocket, boom or bust, while workers have seen none of the gains since Reagan was elected.

            The average person, and I'm talking here about real people in the bottom 90%  people who matter and who aren't grifters but producers of real wealth, has no reason to care about that metric anymore than we do to care about the DOW.

            The Moneyed Classes "recover", the rest of us have just been going one step forward and three back.

            "But the traitors will pretend / that it's gettin' near the end / when it's beginning" P. Ochs

            by JesseCW on Fri Nov 08, 2013 at 11:22:54 PM PST

            [ Parent ]

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