For the average person, real GDP growth means that the average person is technically more rich than they were before the GDP grew. It means that we are more productive and that "work time" necessary to achieve the same things as before has shrunk. Whelan used the example of grandma's chicken, and that although the price of chicken may have grown since grandma was a child, the amount of work time someone must spend to earn that chicken has shrunk.
Tuesday, October 16, 2012
GDP
What does real GDP growth mean for you and me?
For the average person, real GDP growth means that the average person is technically more rich than they were before the GDP grew. It means that we are more productive and that "work time" necessary to achieve the same things as before has shrunk. Whelan used the example of grandma's chicken, and that although the price of chicken may have grown since grandma was a child, the amount of work time someone must spend to earn that chicken has shrunk.
For the average person, real GDP growth means that the average person is technically more rich than they were before the GDP grew. It means that we are more productive and that "work time" necessary to achieve the same things as before has shrunk. Whelan used the example of grandma's chicken, and that although the price of chicken may have grown since grandma was a child, the amount of work time someone must spend to earn that chicken has shrunk.
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I think that you omitted a lot here although your point about grandma's chicken is well taken. What is GDP and what does and doesn't it tell us.
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