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Unformatted text preview: ime job, nobody bought you
a new car, you still have to go to
school every day and do homework.
So what does it matter?
Well, real GDP growth in one year
may not matter much, but how much
it grows over time should matter to
you. How much per capita real GDP
grows during your lifetime will greatly
influence the kind of life you live.
You may be a bit skeptical about
this, so let’s take a quick look at the
history of real GDP. Little per capita
real GDP growth occurred from the
year A.D. 1 to about 1500. A person
living in, say, 1300 didn’t have a
much different standard of living from a person living in
the year 70. It was fairly
common during the
years of little to no
growth in per capita real
GDP for a son or daugh1500%
ter to have the same
standard of living as his
or her great-great-greatgreat grandmother or
grandfather. Today, it’s
different. For example,
your standard of living is
much higher than the
standard of living of the people who
lived in the United States during the
Revolutionary War, Civil War, World
War I, and World War II. And we are
not just talking about the fact that
you enjoy som...
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This document was uploaded on 01/16/2014.
- Winter '14