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How does the current trend in GDP in the U.S impact one as an individual?

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paboo2007 | Student, College Freshman | (Level 2) Honors

Posted September 12, 2011 at 2:01 AM via web

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How does the current trend in GDP in the U.S impact one as an individual?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted September 12, 2011 at 2:11 AM (Answer #1)

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The current trend in the GDP of the US affects different people in different ways.  However, it is generally correct to say that the current trend makes everyone's life seem less secure.

For most of the last two years, the GDP of the US has been growing at a rather slow rate.  The growth rate was only .4% in the first quarter of 2011 followed by 1.0% (according to the current estimate) in the second quarter.  This is very slow growth.

The average individual's life is made less secure by such slow growth.  When the US economy grows slowly, our prospects for jobs in the future are diminished.  Conversely, the likelihood of us losing our present job increases.  This is because slow growth means that companies are less likely to anticipate growth and are less likely to hire new people and more likely to lay off current staff.

Of course, not all people are actually impacted negatively.  However, on average, slow growth in the economy makes the job outlook and, therefore, people's entire lives, less secure.

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