Tuesday, February 5, 2013
Real GDP vs. Aggregate Hours Worked
Click to enlarge.
The sustainability of real GDP growth from here is just one of those things that I do not trust. Go figure.
On the one hand, correlation does not prove causation.
On the other hand, I don't need proof to be distrustful. If I'm walking late at night and an unmarked van pulls up to me and everyone in the van is wearing ski masks, then I definitely better see some snow and some skis. Let's just put it that way. And truth be told, I'd still be distrustful.
And on that third hand, how many trillions more will/can we borrow to prop up real GDP?
This is not investment advice.
St. Louis Fed: Real GDP vs. Aggregate Hours Worked