Thursday, November 27, 2014
Happy Thanksgiving - and an economic fact to be thankful for
- by New Deal democrat
Best wishes for a very happy Thanksgiving.
Here is a little wonky economic thing we can be thankful for. Since the end of WW2, Typically real GDP growth (blue) outstrips job growth (red) by about 2% on an annual basis:
But in this expansion, GDP growth has only exceeded job growth by about 0.5%.
If the usual relationship held in this expansion, we would only be adding about 50,000 jobs a month instead of 200,000 jobs a month. We would have added 1,800,000 fewer jobs in each of the last 3 years than we actually have. That is something to be thankful for.