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The US GDP shrinkage in Q2 2020 was smaller than Germany, France and even the average of the entire Eurozone. You've been caught out by the fact that the widely
by makomk 6y ago
The US GDP shrinkage in Q2 2020 was smaller than Germany, France and even the average of the entire Eurozone. You've been caught out by the fact that the widely-quoted US quarterly figure is annualized by multiplying the actual change in GDP during that quarter by four, whereas the figures for European countries are how much GDP actually shrunk by in that quarter. (Some widely-trusted organisations which should know better even quoted both figures side-by-side in the same article with no warning explaining they weren't comparable. I'm looking at you, BBC.)
If they were actually comparable rather than the US having less of a decrease in GDP, the US figure would be four times the European one rather than three due to that annualization.
- bildung 6y agoI stand corrected, annualized the quarterly shrinkage of US and Germany are about the same. This sadly doesn't change the main point, though: Most of the hardships of employees and small businesses are specific results of the lack of proper relief in the US, without the US economy having gained an advantage out of this.