Statistics Script

Search This Blog

Saturday, January 28, 2012

Is Their Good News In The Bad News?

From Retired Economist Scott Grannis' Blog:


This chart nicely illustrates just how weak the current recovery has been—it's actually unprecedented. According to my calculations, there is a 13% "gap" between the current size of the economy and where it would be if it were following its long-term trend growth rate (3.07% compound annual growth, which breaks down on average into 1% annual growth in the workforce and 2% annual increases in productivity). The current output gap is equivalent to lost income of $1.75 trillion, and that's inextricably bound up with the fact that there ought to be at least 10 million more jobs today if the economy were on its long-term trend growth track.


http://scottgrannis.blogspot.com/2012/01/13-gdp-gap.html

No comments: