Here is the most important chart I have seen in some months now. The chart shows the ‘new normal’ post-2007 crisis in terms of per capita real GDP for the U. S.
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The key matters highlighted by this chart are:
The Great Recession was unprecedented in terms of severity of its impact and duration of that impact for any period since 1947. The Great Recession is the only period in the U. S. modern history when the long term (trend) path of real GDP per capita shifted permanently below historical trend/ The Great Recession is the only period in the U. S. modern history when the long term trend growth in GDP per capita substantially and permanently fell below historical trend. As the result, as the Roosevelt Institute research note states, ” output remains a full 15 percent below the pre-2007 trend line, a gap that is getting wider, not narrower, over time”.
This post was published at True Economics on Friday, August 4, 2017.
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