Quote:
Originally posted by moe.ron
Unemployment has very little to do with GDP growth. GDP growth over time will trickle down and lead to more jobs. It will just take a little time for companies to gain confidance that consumer spending is still on the rise. Typically 60% of GDP is consumer spending. Once consumer confidance and investor confidance goes up, then they will add more jobs to further increase output.
GDP is obviously a great way to measure economic growth. But IMO the unemployment rate is the ultimate measure of the well-being of the economy. 7% growth in GDP is great but it only makes a difference in unemployment if it lasts for many many quarters. I doubt we will have 7% growth this quarter......
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You're right about the relationship between unemployment figures and the GDP. I was simply giving current figures. Let's see... more bad numbers... Personal income went up .02 percent. Wicked corporate American had 80 plus billion in profits in the 2nd qtr... bad, bad, bad!