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GDP?
What is a point of GDP worth?
Why is it that big a deal if we have 2.5% or 3.5% growth YoY? I did a simple little numbers game to get some perspective. If two economies start with the same GDP per capita, how would big a difference would that one point make. After 10 years the high growth economy is 10.2% better off. 25 years: 27.5% 50 years: 62.4% 100 years: 164% Or on a per capita basis. A 2% growth in per capita GDP (price adjusted) from 1900 to today brings us to roughly were we are. Now let's cut that down to 1%. The per capita income in the US goes from $36,672 to $13,161. So if we had endorsed policies that lead to even a 1% decrease in GDP growth per year, that's where we'd be at right now. |
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