4 ms·
The way the GDP and the GDP growth are calculated is a bit funny. In that if you start with one year and compound the official GDP growth for a number of years,
by credit_guy 5y ago
The way the GDP and the GDP growth are calculated is a bit funny. In that if you start with one year and compound the official GDP growth for a number of years, you end up with a number that is much lower than the actual GDP at the end of that period.
In this particular case, Dyson mentions a GNP of about $600 BN. Since I don't know exactly the difference between the GDP and the GNP, I'll use the official GDP as recorded by the Fed [1]. It was $968 BN in 1968 and $21.5 TN in 2020. That's a (compounded) growth rate of more than 6% per year.
[1] https://fred.stlouisfed.org/series/GDP https://fred.stlouisfed.org/series/GDP
- dragonwriter 5y agoThe data series you are looking at is nominal, not real, GDP [0], so the annual growth multiplier (1 + growth rate) is the real GDP growth multiplier times the inflation multiplier. In current dollars, 1968’s real GDP is something over $4 trillion. [0] The St. Louis Fed has both series, see https://fred.stlouisfed.org/series/GDPC1 https://fred.stlouisfed.org/series/GDPC1