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74% Of Nominal GDP Growth Due to Inflation

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the staff of the Ridgewood blog

Ridgewood NJ, one way to measure inflation is the difference between nominal and real GDP. Using that metric, inflation has been rising at an alarming pace, accounting for more and more of nominal GDP. Three quarters of the apparent gains from July through September were just inflation, not real growth, which is why the real GDP figure came in at only 2.0%.

Nominal gross domestic product (GDP) is a measurement of economic output that doesn’t adjust for inflation. GDP measures everything produced by all the people and companies within a country’s borders. When you hear reports of a country’s GDP that don’t specify the type, it’s likely to be nominal GDP.

Meanwhile, the Labor Department reports that wages over the last year after inflation actually LOST 1.2% – meaning workers are poorer in 2021 than they were in 2020.

2 thoughts on “74% Of Nominal GDP Growth Due to Inflation

  1. Biden and his “woke” socialist administration have no idea how to control inflation. They lied in June saying it was “transitory inflation” and would soon disappear. An outright lie.
    Inflation and their lies keep accelerating at an alarming pace.

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  2. That’s what you get when you select your cabinet members on skin color and sexual preference. What a joke!

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