Whether it’s Bill Bernanke, lack of employment, the money, the stock market, interest rates, proper gdp, inflation, the debt, QE, it could be even more, it seems like we aren’t go a day without experiencing a presidential candidate tell us that “this is our first year of recovery. ” If only this were true. Unfortunately, it certainly is not and here is why. The economic growth fundamentals that politicians quite often tout have already been known for years, if not really decades, and they never have produced the economic development or job creation that they’ve promised. So when exactly is the next time that company website we are going to hear these economic progress basics?
Let’s imagine for the sake of controversy that we do get a healthy increase in per capita real financial growth (GDP growth) and unemployment visits at current levels, then future economical outlook is looking pretty glowing. But , what happens if something occurs that causes an unexpected downturn in the economy that will last, say, a -3% year on year? At this point, this may not really seem like much of a problem in the beginning, but suppose that the economy does encounter an unexpected economic downturn lasting regarding five months. The unemployment rate may well end up being double that body and perhaps also higher. It requires a significant number of weeks to turn facts around and reach similar level even as we are at right now.
That’s why it’s important to remember that the fundamental financial growth fundamentals that political figures tout may work. They are really nothing more than cigarette smoke and decorative mirrors. It’s time that we proceed from these kinds of false property and start applying real gross domestic product based on the case economic development numbers that could actually gain the economy. Just then can all of us truly view the results which we so seek.