Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Corner Office from Marketplace
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Less than zero

Sep 17, 2019
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Why do we need GDP to grow anyway?

Noel King Apr 26, 2013
Share Now on:
HTML EMBED:
COPY
With a chart showing federal spending as a percentage of Gross Domestic Product in the background, U.S. Treasury Secretary Timothy Geithner testifies before the Senate Budget Committee March 12, 2009 on Capitol Hill in Washington, DC.
Win McNamee/Getty Images

U.S. GDP grew at an annual pace of 2.5 percent in the first quarter, falling short of the 2.8 percent that economists predicted and disappointing investors. But in uncertain economic times, why aren’t economists satisfied if GDP simply holds steady?

“GDP growth is linked to jobs growth,” says David Weil, a professor of economics at Brown University. “So unless the economy is growing rapidly enough, it’s not going to be able to absorb the new workers who are coming in, much less reduce unemployment.”

Each year, as a new — and bigger — crop of young people enters the job market, they are counting on GDP growth to make room for them in the job market. But it isn’t just about jobs. Economists say that GDP growth affects how we view ourselves as a nation. 

“Most people agree, I think, that output, and hence, their ability to consume should improve. This is sort of the American Dream — things get better as you look toward the future,” says Richard DeKaser, an economist with Wells Fargo. 


Audio Extra: Marketplace Economics Correspondent Chris Farrell discusses GDP growth, consumer confidence and the financial industry — and it doesn’t look good.

 

Audio Extra: Chris Low, chief economist with FTN Financial, explains whether 2.5% GDP growth is the new normal.

 

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.

“I use clips from the show in my classes so students can grasp complex ideas and make connections to their own lives.”
Ashley, Ft. Worth, TX
Marketplace Investor