Asked • 05/17/19

How is the GDP growing when nothing else seems to be?

We've had strong GDP growth all three quarters this year. To me, that would indicate that, in at least some areas, we should be seeing growth. However, from my extremely ignorant armchair, it doesn't look like that's happening. [Wage growth has held steady](https://tradingeconomics.com/united-states/wages), [the DOW](https://www.google.com/search?q=dow&rlz=1C1GCEA_enUS812US812&oq=dow&aqs=chrome..69i57j69i60j69i61j69i60j69i59.215j0j1&sourceid=chrome&ie=UTF-8), [S&P 500](https://www.google.com/search?rlz=1C1GCEA_enUS812US812&ei=eyHTW5H5EIagswXM57boAQ&q=s%26p+500&oq=s&gs_l=psy-ab.3.1.0i131i67j0i67l6j0i131j0j0i131.36048.36048..37225...0.0..0.47.47.1......0....1..gws-wiz.......0i71.XtL_x7wv15E), and [NASDAQ](https://www.google.com/search?q=nasdaq&rlz=1C1GCEA_enUS812US812&source=lnms&tbm=fin&sa=X&ved=0ahUKEwiTifHipaTeAhUpgK0KHbgDCgEQ_AUIDigB&biw=1764&bih=850#scso=_rCHTW93xOMO8sAWcnaegAg1:0) are all roughly even year-to-date, and [the deficit has grown 17%](https://www.usgovernmentspending.com/federal_deficit_chart.html). Even [the trade deficit is growing](https://www.cnbc.com/2018/10/25/us-trade-deficit-widens-for-fourth-straight-month-hits-76-billion.html). This confuses me. Though not perfectly correlated, I thought the GDP would at least be a strong indicator of these other financial components (or the other way around).To grossly (pun unintended) oversimplify my point: it sounds to me like the value of America has gone up, but there's somehow less money in America. Am I missing something? How can the GDP be consistently growing at a rapid rate when nothing else seems to be?

1 Expert Answer

By:

Jim M. answered • 05/24/19

Tutor
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Master's Degree and Master of 39 Subjects

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