Why Living Standards Decline as the Economy Appears to Grow

Why Living Standards Decline as the Economy Appears to Grow
The New York Stock Exchange (NYSE) in New York on May 27, 2022. Angela Weiss/AFP via Getty Images
Robert Genetski
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Commentary

Government data show the economy grew by 3 percent over the past year and is continuing to grow this spring. Normally, when the economy grows by 3 percent, it is something to celebrate. Real growth means living standards are increasing and the main challenge is how to spend the newly acquired income. Unfortunately, for most workers, there is no surplus of income.

Robert Genetski
Robert Genetski
Author
Robert Genetski is a public speaker, author, columnist, and one the nation’s leading economists. He has taught economics at the University of Chicago’s Graduate School of Business and NYU. His latest book is “Rich Nation, Poor Nation: Why Some Nations Prosper While Others Fail.” Genetski’s website is ClassicalPrinciples.com.