Chart of the Day: The Economy is Worse Than You Think

The Fed’s Jeremy Nalewaik argues that a measure of GDP using income levels is a more reliable guide to the actual business cycle than the traditional measure of GDP using spending. If that’s true, says Justin Wolfers, the recession started nearly five years ago and was much deeper than we think: GDP per capita dropped 7% and is still well below its pre-recession level.

And what are we doing about this? Pretty much nothing. Apparently we’re content to follow Japan into oblivion.

Fact:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn’t fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation so we can keep on doing the type of journalism that 2018 demands.

Donate Now