GDP - A Story Of Wealth Creation
Investors look to share in economic growth. In order to understand where the economy may be going, it is useful to understand where it has been.A simple chart of real GDP shows vast growth in Gross Domestic Product - which is a measure of the total dollar value of all the goods and services produced in the United States in a given year. GDP is a growth function in that the current growth is on top of all the growth that occurred in the past. Growth in some goods and services may decline while others expand, but in aggregate the usual state is for growth in GDP. Real GDP takes out the effects of inflation and averaged 3.22% from 1929 through 2016.
Investing assists in the growth function of GDP by giving capital to businesses to grow. In return, the investors share in a slice of that growth.
1) https://www.thebalance.com/us-gdp-by-year-3305543
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Performance data showing past performance results is no guarantee of future returns.
