A GDP growth 📶 of 2.9% might sound like a solid economic performance, but let’s take a deeper look 👀 at the numbers.
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GDP (Gross Domestic Product) is the sum of all goods 🍱 and services 🚚 produced by a country in a given amount of time.
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GDP is considered by most economists to be one of the most #important indicators 🚨 of an economies health 🏥.
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GDP = Total consumer spending ✈️ + Total Government Spending 🏛 + Total investment 💸+ Net trade (exports -imports) 🔀.
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Government Spending 🏛 is not bound by tax revenue, but also includes the deficit spending that it borrows, increasing the National debt 🎈.
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In #2018, total #US 🇺🇸 GDP grew by $1.02T while the total deficit was $1.2T !
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That means that if the government did not run a large deficit ⚠️ , the #economy would already be in recession.
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Does this seem like a sustainable ♻️ track for real economic “growth?”