
If there was a period where basic products such as gas, food and construction supplies were either scarce or even rationed, many Americans were out of work and it was even so bad that the auto industry was basically unable to churn out cars – you might consider that a depressed economy, yes? What if during that same period, I told you that GDP was going up by leaps and bounds. You think I am making it up? That is exactly what happened during World War II.
In fact, most of the Great Depression saw GDP above 5%.

Think about that when you see reports like this one today which says that GDP is up almost 6% and therefore “is another sign that the U.S. economy has pulled out of the deepest downturn since the Great Depression.”
GDP is not meaningless, but it can be. The reason GDP looked so good in WWII is because government was spending boatloads of money on completely useless things like tanks, planes and dressing up grown men in camo pyjamas and shipping them all over the world. The prices for these kinds of things are not market prices and they are also not market demands. They actually detract from the economic well-being of a country – yet the GDP includes them as positives.
That 6% figure from last quarter should scare the crap out of you. It means that in spite of the massive amount of money being thrown at corporations, welfare, job programs and military spending – the GDP only grew by 6%. Projecting how much the real (market-based) economy actually shrank this past quarter is not easy with all of these conflated statistics. But it is highly doubtful that the economy is growing. And it is most assuredly the case that the recession is far from over.
I never, ever get a chance to stalk sports on this blog, but I wanted to address the current situation at the University of Oregon.

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