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Its crazy to me that gdp only shrunk by 9 percent for the quarter. Thinking of the fuel that wasn't used, the entertainment services that weren't consumed, the
by anm89 6y ago
Its crazy to me that gdp only shrunk by 9 percent for the quarter. Thinking of the fuel that wasn't used, the entertainment services that weren't consumed, the non essential shopping that wasn't done and then all of the side effects like reduced financial transactions on the other things that didnt happen, it's crazy to me that that wasn't more than that.
Thinking through this does help me to see why you have to annualize if you aren't doing a quarter to quarter comparison.
- lippel82 6y agoNo, wait, compared quarter to quarter it really did decrease by 32.9%. The 9.5% is what would be missing if suddenly everything went back to normal. Which it won't.
- nkurz 6y agoI don't think that's true. Or maybe I misunderstand you? The US GDP in constant dollars [1] went from $19.0 Trillion in 2020Q1 to $17.2 Trillion in 2020Q2. The number for 2019Q2 was also $19.0 Trillion. Isn't this a 9.5% decrease from both the previous quarter, and the same quarter in the previous year? Is there a way in which this read as a real 32.9% decrease? [1] https://tradingeconomics.com/united-states/gdp-constant-prices https://tradingeconomics.com/united-states/gdp-constant-pric...
- solotronics 6y agoI wonder if it's just a matter of creative accounting? Whole sectors of the economy such as travel, dining out, entertainment disappeared for a period.