What does real GDP growth mean for you and me?
Wheelan Chapter 9 - Keeping Score
First of all, real GDP growth refers to the GDP adjusted after inflation, whereas normal GDP growth strictly looks at the numbers (price times quantity). A GDP growth, to me, gives me an objective idea of the progress of our country. However, what is important to notice is that this greater idea of "progress" is subjective in it of itself. While our GDP may be growing, one could say that the progress of country is actually deteriorating because our general level of happiness is deteriorating. Thus, to me, GDP growth is not an effective way to measure our economy, nor is it the only way to measure our economy as noted by Wheelan. He mentioned that we also need to look at Unemployment rates, poverty lines, national savings, national debt/surpuls. GDP growth is only an objective way of looking at the economy - not a true way to assess how our country is growing.
"Nominal" not "normal." You did address how GDP is an incomplete measure by itself. Some of the points that Whelan made about GDP per capita and equality were ignored in your blog post but because you were clear and informative I will succumb.
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