The U.S. GDP is still not back to pre-recession levels after adjusting for inflation. Per capita GDP is even further behind and will take even longer to return to pre-financial crisis levels.
Arpit Gupta notes that incomes fell significantly below consumption about a year and a half before the financial markets collapsed. Borrowing against inflated housing bubble home values postponed the time of reckoning for this excess consumption for a while, but not indefinitely.
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