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Debunking Myths about Fiscal Intervention and the Recovery

Debunking Myths about Fiscal Intervention and the Recovery

Debunking Myths about Fiscal Intervention and the

10/5/2011 Debunking Myths about Fiscal Intervention and the Recovery Elliott Parker, Ph.D. Professor of Economics University of Nevada, Reno October 4, 2011 Putting the Rise and Fall of GDP into Real Per-capita Terms 2007:4 2009:2 2011:2 2007-09 Change 2009-11 Change 2007-11 Change Gross Domestic Product (billions) 14,253 13,854 14,997 -2.8% 8.2% 5.2% GDP Deflator (2005=100) 107 110 113 2.5% 3.2% 5.7% Population (millions) 303 307 312 1.3% 1.7% 3.0% Real Per-capita GDP (2005 dollars) $43,956 $41,163 $42,469 -6.4% 3.2% -3.4% The “recession” officially ended in mid-2009, when real GDP stopped falling. But real GDP has yet to catch up to where we were in mid-2007, and we are still 3.4% below 2007 in real per-capita terms. 1

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