"In assessing our economy or, really, any economy, you want to know if the economy is growing, that there are enough jobs for people, that people can borrow at reasonable rates and that the dollar you hold today is worth about the same as it did a year ago. If those four metrics are solid, we are good. Using Pareto's 80/20 principle-the idea that 20% of any set of numbers constitutes 80% of the value of the entire set-we"
"When rhetoric gets loud in politics, look at the basic math. First, consider gross domestic product (GDP). GDP is simply the value of all the goods and services a country produces within a time period. Think of GDP as a country's sales or revenue, just like the top line for a company. After a minus 0.6% growth rate at the start of the year, the second quarter bounced back with a 3.8% increase."
Four metrics—real GDP, unemployment, interest rates, and inflation—drive most economic outcomes. Recent data show third-quarter real GDP growth accelerated to 4.3%, following a 3.8% bounce in Q2 after an initial -0.6% start to the year. Unemployment at 4.6% remains below the post-1950 average of about 5.7% and far lower than the 2020 peak of 14.8%, indicating a favorable job market. Reasonable borrowing costs and stable purchasing power are also crucial. These core indicators counteract perceptions of a 'vibecession' driven by high grocery and housing prices.
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