[Infographic] Pretend Economic Indicators – GDP, GDP Deflator & Productivity

Inflation is a three-way tug of war between household, business and the government. There’s plenty of supply out there. We have 3 trillion labor hours in America alone. But it’s not as essential as it used to be because of technology. But on the other hand, healthcare costs are rising and many are concerned that our debt is growing faster than our GDP.

GDP is, for the majority of analysts, pundits and commentators the primary indicator of economic growth. GDP does not adjust for inflation though and as a result it overestimates real growth rates. In order to get a better measure of economic activity we have to adjust nominal growth for inflation. We use what is called the GDP deflator – a complex index of inflation which attempts to adjust prices for quality.

It’s hard to know what real economic growth looks like, and this is one of the reasons why the world has been tricked by fake economic growth the last decade. Indicators are used to present a better picture of reality that is not there.

For more information, please refer to the info-graphic below.

[Infographic] Pretend Economic Indicators – GDP, GDP Deflator & Productivity