Chart Of the Day
by Robert Folsom
This is a picture of sluggish economic growth
as depicted by The 10-Year Growth Rate of Real Per-Capita GDP.
A version of this chart was recently in the New York Times, yet it updates a much larger issue in the economy that Bob Prechter spelled out back in 2002, in his best-seller Conquer the Crash.
Now, Growth Rate of Real Per-Capita GDP is a mouthful. But bear with me, because the regular monthly GDP simply doesn’t tell you as much.
What this measures shows you is the GDP growth rate — and it adjusts for population, and it adjusts for inflation — all built into one trend line. That’s a far more revealing picture of the economy.