When gross domestic production is measured by the quantity produced and equals the years
price(s), one has nominal gross domestic production, or GDP. Nominal gross domestic
production (GDP) is found by adding Consumption (C), Gross Investment (I), Government
Purchases (G) and Net Exports (NX).
Our current economic climate feels like we are headed towards a recession or, are we
already in one? As gasoline prices continue to fluctuate and with the housing market having
high interest rates on homes, I think most of us have been seeing inflation for the past
several months one way or another.
A few months ago, the realtor who sold my spouse and I our home in 2020 reached out to
ask us if we would be interested in selling our home. She stated that there are people who
wish to purchase homes right now but there were not many people selling their homes. I’ll
admit that it was tempting as we have earned quite a bit of equity. However, we have only
lived in this home for 2 years and moving again is less than ideal. Nevertheless, I was
surprised that the housing supply was so small in my area that she reached out to old clients
in hopes of creating a larger inventory. In addition, since our homes value has increased
since we purchased it, our mortgage payment will now be increasing.
I remember the feeling of the recession in 2008 and can see some similarities between then
and now. Despite these feelings, we are not in a recession. Gura (2022) “Treasury Secretary
Janet Yellen stated, while on NBC’s ‘Meet the Press’, that, “When you’re creating almost
400,000 jobs a month, that is not a recession” . GDP is the value of all new final goods and
service produced within a country’s borders. GDP does not include intermediate goods in its
calculation. Intermediate goods are used to produce other goods. For example, when Pizza
Hut buys cheese to produce pizzas, the cheese is an intermediate good.Final goods are
purchased by the end user. When the Lyman household purchases cheese, the cheese is a
final good. That is truly interesting that the American government has not issued a recession,
and yet most Americans seem to prepare and even believe they are living through one. I
wonder if that is pure because the government is using broad strokes numbers for data
collection or if they do not see how affected most of our daily lives are by the inflation of
things like food and gas prices? Technically GDP takes into account social and
environmental issues in measuring economic growth is questionable. GDP does not factor in
a number of elements important in determining the well-being of people. For example, it
overlooks the value of certain non-market goods and services such as natural resources and
unpaid activities and leisure. A big factor of our economy and a recession is the price of oil,
the prime rates on credit cards can be affected, costs of food as well. I felt that if we were to
use our own oil from Alaska this could have a positive effect on our countries GDP. Just as
our Natural Gas , The United States is the world's Natural Gas producer, Domestic dry
natural gas production in 2020 was 33.5 trillion cubic feet.
One thing I find interesting about spending trends is how holidays are tracked year to year.
Specifically, Christmas is usually a good indication of how the economy is doing. Black
Friday is also tracked heavily when determining the health of our economy.
When you mentioned the consumer price index for July, my first thought was the rise was
probably due to the fourth of July holiday. Working in sales, I think a lot about how outside
factors will impact my job working in a grocery store.I think our economy is still in recovery
from the pandemic and it may be more difficult to make predictions and accurate
assumptions of the health of our economy because of the lock downs implemented around
the world have impacted our ability to receive goods and to send goods. Following the
Second World War and the Great Depression, the Gross Domestic Product (GDP) was
developed to give decision-makers a gauge of economic activity and performance. You
mentioned the drop in the GDP and how this caused inflation to spike and this very thing
happened years ago-especially when you factor in the unemployment spikes throughout our
country. This is an important tool to measure how the global wealth is doing and can predict
what will happen in the future.
I think we are already in a recession it it will get worse before it gets better. Looking at
history, we have been here before but I think now since Covid and the lack of ability to get
goods is shedding ore light on things. I liver in a heavily populated area in NY and for the
last almost 3 years, the shelves are bare and there are limits on buying every where. I never
thought that in the greatest place in the world and one of the largest cities, I would have a
problem getting eggs or chess or any of the basic food or paper products that one needs
daily. I am not seeking specialty or delicacy, mere bare necessities. I think that state of
economy we have been in is terrible and the politicians are not making it any better for the
people they are sworn in to serve or represent. It's a shame and the costs are killing your
average person. The lower income folks are benefiting the working people are becoming
poor. Tracking the GDP onto any graph is definitely a good way to to track weather and
economy is drifting towards or away from a recession. I really like how the article shows the
correlation between the gross domestic product and it's relationship with moving away from
or towards a recession within an economy. With this assignment I got to look at several
different articles talking about how the GDP associates itself with a recession and how
opportunistic is it that we’re seeing these changes now and how we will likely see a GDP
change showing us moving away from a recession probably in the next year.
Realizing the Real GDP can be an eye opener for those seeking an unbiased approach to the
economy. Some numbers given to Americans about the economy could be true but not
currently reflecting Real GDP. Taking data points and using them to show what's going on
now compared to a baseline from the past is the only true way to show what is happening in
the economy for sure.
