Be Excellent To Each Other

Saya country has a GDP of say $2 Trillion in 2010 then increases by 10% to $2.2 Trillion in 2011, and then by another 10% to $2.42 Trillion in 2012, then in 2013 it drops to $2.3 Trillion in 2013.

As far as I understand it, at that point the country is technically in recession, despite 2013 being better than 3 out of the previous 4 years, all of which would have been considered very good years.

If that is correct, then I don't understand why we use "growth" as an indicator of how well a country is doing?

Surely it's like deciding the winner of a drag race based on which car's has the fastest acceleration and not the time to the end of the track?

Why do they use growth as such a powerful economic indicator?

Malc

Because of inflation. You have to grow to stand still.

Also - where does money come from? How come everything costs more now and yet we can buy it? That means more money came from somewhere. Was it the JUMPY JUMPY HOBGOBLINS?

Why can't inflation just stop? Go away, like? What's it good for?

Thems are reasons why it's good for people other than us, basically.

Not a lot. But state pricing controls (which is the only way to do it) are a lot worse.

And that way lies fascism.