I swear I had Econ in college, but I don’t remember anyone saying this so succinctly. It’s from a weird place too, but this quote hits home. It’s like population decline, but for money.
It was a truly baffling thing for an American president to say. And University of Michigan economist Justin Wolfers explained on MSNBC that things could get very bad as Trump’s scheme becomes reality. Wolfers ntoed that the idea of how much you can afford to buy with your income is called “real income.” And if real income falls, that’s called a recession. Wolfers went on to explain that if things decline as badly as Trump’s example, where someone who bought 30 dolls could only afford to buy two dolls, that’s called a depression.
Video from MSNBC: https://www.youtube.com/watch?v=sAZxLm6M_V0
Did you see my first crack at it? I would love your input. I think the “Real GDP” might be not adjusted for inflation? I can’t tell.
Real GDP is adjusted for inflation. That’s what the term Real means. Nominal GDP is not adjusted. I always think that reporting should primarily focus on real GNI per capita, which is slightly more informative than real GDP, but in practice I think the differences won’t be shocking.
Thanks for taking the time to respond. IMO, economics has some easy concepts that are hidden behind terms. Every industry has it, but all this info is kind of hidden anyway for a noob like me.
Is every 101 college class really just “here’s what all the terms mean in this field”? I suspect the answer is yes.
Mine wasn’t, it was a university known for being one of the best for economics and had huge classes. I did not do well in that class. It was an advanced 101 class.