Friday, July 27, 2012

Real GDP Growth per Capita

Click to enlarge.

Click to enlarge.

The chart shows the average real GDP growth per capita over the previous decade.

Please forgive me for not jumping up and down in delight at today's "new normal" real GDP per capita growth. The annualized real GDP growth came in at 1.5% in Q2. Once you adjust for population growth, there's not a whole lot left.

What does this mean?

1. Our standard of living has been stagnating for more than a decade.
2. Old Normal -> Normal -> New Normal -> New New Normal?

The anticipation of the next normal probably helps explain why the 30-year TIPS yields just 0.41%. 30 years is a long time. Things happen.

Source Data:
St. Louis Fed: Real GDP
St. Louis Fed: Population


Troy said...

And yet to promote the GDP we have we've been taking on more and more debt

shows when the leverage events happened . . .

Money is flowing too quickly upwards & out, and not enough downwards and sideways . . . debt has been the only way to keep the game going, at least since 2001.

Speaking of games, I should make a boardgame of my thesis. Call it Life 2000 or something.

"NAFTA is passed! Roll 5 or greater to keep your job each year!"

Stagflationary Mark said...


"NAFTA is passed! Roll 5 or greater to keep your job each year!"

Life 2000! I love it!

Be the chairman of your own board game!

Game the system before the system games you!