U.S. Economic Performance September 19, 2017

U.S. GDP Growth Rate Since 2007 What happened in 2008-2009? The Great Recession Recovery What is the period of growth after a recession called?

GDP growth for the second quarter 2017 was 2.6 %.

What is amusing about the sign? Recession An economic slowdown characterized by declining economic output and rising unemployment. Data indicators for recession include GDP growth and unemployment.

Depression A severe and prolonged drop in economic activity.

Household Income Since 2000 Breaking News: In 2016, real median household income increased 3.2 percent. The Great Recession has ended, but household income has not fully recovered. Household Income Since 2000

Unemployment Rate Since 1960 The August 2017 unemploy-ment rate was 4.4 %. .

Labor Participation Why are people NOT in the labor force? The employment rate has not recovered from the Recession. Labor Participation Why are people NOT in the labor force?

Corporate profits have more than recovered from the Great Recession and are growing more rapidly than the nation’s economy. Corporate Profits

Employee earnings have not recovered Employee earnings have not recovered. Corporate profits are up but they have not been passed along to the workers. Wages

CEO Pay

Dow Jones Industrial Average What is this chart measuring? The stock market has more than recovered. In September 2017, the market stood at 22,119. The Dow Jones measures stock prices. Dow Jones Industrial Average

Low because of reduced demand for goods, services, and labor Inflation A general increase in prices and wages, diminished purchasing power of the currency Would you expect inflation to be high or low during a recession? Why? Low because of reduced demand for goods, services, and labor

The current inflation rate is below 1 percent. CPI = consumer price index RPI = retail price index Most economists believe that a healthy economy has a modest unemployment rate of 5 percent or less and a moderate inflation rate of less than 5 percent. The current inflation rate is below 1 percent.

What is a recession. What economic indicators point to recession What is a recession? What economic indicators point to recession? What is a depression? How has the U.S. economy performed in terms of GDP growth, household income, unemployment rate, employment rate, corporate profits, CEO pay, stock market averages, and wages? What is inflation? Is the current inflation rate relatively high or low? What You Have Learned