Quote:
Originally Posted by theking
...and it is reported that millions are without work. I don't understand how the economy can grow when multi millions of the work force is not working. Any economists here that can educate me.
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The GDP is a basic measure of the economy as a whole and includes private consumption, gross investment and government spending. You can still have high unemployment and have the GDP grow in small amounts it mostly means that the government is spending money and those with jobs are spending money. The cash for clunkers program would be a good example of spending by consumers and the government.
That said I think the GDP can only grow so much with high unemployment. That will have to start turning around before it can really start to grow.