FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 02 December 2017

GDP Is Not Measuring Much

Written by

I hate using GDP as a metric for economic growth. It does not measure how Jane and Joe Sixpack are doing.

Please share this article - Go to very top of page, right hand side, for social media buttons.

Even disposable personal income is a metric which includes a lot elements that the relatively poor Sixpacks do not see reflected in income gains. This is aggravated because disposable income is an average (and not median).

Median income is not tracked in real time having almost a one year lag. Median income data is current only through the end of 2016. When one indexes median income and GDP - one sees GDP growing much faster than median income.

In fact, from 2000 to 2015, median income has grown 20% whilst GDP increased 80% [numbers are not inflation adjusted but are seasonally adjusted]. GDP measures money spent on new items or services whether that sale was profitable or not.

I am not sure one can tell what GDP is saying about the state of the economy.

Other Economic News this Week:

The Econintersect Economic Index for December 2017 marginally declined and returned to territory associated with slower economic growth. Still the economic growth forecasts in 2017 have remained in a very narrow band. Six-month employment growth forecast is now indicating marginally improving growth.

Bankruptcies this Week from Cumulus Media, Walter Investment Management

Weekly Economic Release Scorecard:

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Contributors

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved