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long_time_gone | 3 years ago

If GDP goes up 5%, but you only get a 3% raise does that make GDP a bad measure of the economy?

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vmception|3 years ago

Assumes GDP is a good measure without this hypothetical

long_time_gone|3 years ago

I don't follow, can you please clarify?

Edit: Reread and understand now...

The point is that GDP is a measure of how much the economy in the US grows or contracts, just as CPI is a measure of how much prices in the US grow or contract. You shouldn't view GDP as a personal indicator of economic growth, just like CPI isn't an analysis of costs on your personal spending. Treating it as such feels like distorting the purpose of the measure to suit a narrative.