How GDP Tells Us if We're in a Recession | WSJ

[@ASLUHLUHC3]

Next video: how temperature tells you if it's freezing

[@emersonherrera4939]

😴😴😴

[@tunim4354]

Lol I was wondering the same thing. This is such a clickbait video for the layman.

[@Je.rone_]

*Wealth can be built because of a recession if you play your cards right*

[@DavidMartinez-il6ey]

at the cost of many others.

[@johndirac6707]

@@DavidMartinez-il6ey ​ How is it at the cost of other people? You can definitely startup a business especially cloud computing in these times, or if you made money short selling or buying puts / or buying at the low, that just gets matched with other people on Wall Street who attempt to bet on the fluctuation of stocks, they understand their bets are risks if they're wrong that risk is already calculated for them. (And your bets don't affect people who are investing long-term, they either already would have or already wouldn't have invested regardless of your decision to bet on Wall Street). If you open up a business then you're directly creating value for these people.

[@geekedmaxx]

Very true , alot of businesses can be built from a recession to because of low rents , and housing prices , the housing and retail market is already overpriced ,we need low rents for people at home and low rents for businesses

[@michaelh2931]

"Pay your cards right"

[@kn9ioutom]

BABY BUSH TRIPLED THE PRICE OF GOLD !!!

[@prospecops]

If I pay you $20,000 to punch me and you pay me $20,000 to punch you, we both have 0$ net gain yet the GDP grows by $40,000.

[@zephyrryu999]

No,GDP grow by two punches, for one country one punch counted!

[@justinle998]

Similar to the broken window fallacy in economics

[@kyh6767]

This is stupid. The punch would count as gdp only if the punch is considered as a service, which is not

[@FoodRecipes108]

20000 is counted

[@BeenSauce]

@horizon sldkfjslfkjaslkfsjdlfkjsajfx,mnv,xmc

[@DavidMartinez-il6ey]

I liked the “ might start to recover “

[@andio310]

Did you notice her stutter when she said that? Chilling.

[@lightningmcseed7303]

And I know people who are *glad* that the economy is falling

[@Medicine91]

It's lower than before. Give me the Nobel Memorial Prize in Economics.

[@tharindukottegoda989]

Just saying that would be the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

[@AbhishekSingh-pp1ks]

Tharindu Kottegod. r/iamverysmart

[@SuperStargazer666]

That final “might start to revover” was somewhat half-hearted

FED hears the word "recession" and the printer goes brrrrr.

[@clintonbates4592]

If you really want to know how the economy is doing ask your local business owners. The market right now is extremely hyper inflated and the bubble will eventually burst

[@markmaugle4599]

One of the two industry items WSJ cited was Oil, which was directly effected by the response the the virus. So why aren’t you proposing some solutions to the problem? I would think that the WSJ would be interested in seeing the economy grow.

[@djmauropicotto]

Recover to what? Its was already going down even before the pandemic.

[@UXtatic]

GDP does not measure well, only about corporations and the country, not the people in the society...find a different measure.

[@terencekwong3033]

Sooooo when the news mentions military got more money than they asked for - this is good for GDP? Recession avoided 😅

[@curtiscarpenter9881]

GDP is something we will be needing to rethink a lot over time towards its overall use, look at the bottom window fallacy.

[@michelbruns]

Well explained

[@is1dre]

The entire concept that a recession is signaled by 2 consecutive quarters of GDP contraction is silly. That notion came from a newspaper article decades ago in which one economist was asked how we would know if we are in a recession. He gave a ton of different indicators, but this '2 quarters' indicator was the easiest for the media and people to remember.

[@mrpmj00]

It's way better to have a stimulus than unemployment. We need to take care of today before we even think about tomorrow.

[@importantname]

Growth is why the climate of our planet is of minor importance - Economy First

[@tehmujin5330]

WSJ = We (very very) Sick Journal

[@fturla___156]

This video fails in providing actual defined recessionary and recovery phase information. It approaches the topic then the graph, video, and data points in the end are left out.

[@aliali-ce3yf]

so how to capitalize on it? what areas to invest in to reap big gains when the economy turns around?

[@johndirac6707]

it's already turned around, too late for that. SPY/QQQ dropped 30% and then rebounded 30%

[@claws811]

Yes the floor here is made of floor

[@maryjency3195]

Awesome explanation 😇😇😇😇😇😇😇😇

[@berrybear2465]

That means -0.25trillion in the 1st Q -2trillion in the 2nd Q

[@yusrilmr63]

So, recession is negative economic growth in two consecutive quarter. Is it quarter to quarter or year on year comparison?

[@ethanhoffman2667]

Quarter to quarter. It has to be consecutive. Lets say the US takes a hit in Q1 and recovers in Q2, but falls again in Q3. This is not a recession because this shows market volatility and how it can correct itself and recover easily. But, if it’s consecutive, it shows a true decline and not just a one and done scenario, therefore making it a recession. One other thing to take note of is that a depression is where there is 4 consecutive quarters of decline in the market. That’s what happened in the late 20’s early 30’s

[@TheGetout04]

Very timely, no country on earth would not get hit by at least a recession sadly

[@Kangroo11]

it took 2 months to tell wall street journal to tell us that are we in recession ?

[@claws811]

Mmh yes the floor here is made of floor

[@viperabyss]

No. It takes 2 months to officially declare it as a recession, since as the video states, a recession is defined by two consecutive GDP contraction.

[@viperabyss]

@@alalducente You're right. I don't know why I wrote 2 months.

[@businessplus2072]

How to tell if a country is in a recession: Two quarters of consistent negative GDP growth.

[@Ayella_256]

What can be used to create such videos?

[@sanujitroy6830]

Hence we see 70% startup shaking

[@shivamchawla4768]

Thanks it really tells me everything

[@heebongkimhat]

Transfer payments dont count in gdp

[@michaelh2931]

Guess where all the stimulus money went? Into the banks, which will now use it to make high interest loans for small business and people trying to keep their home and car and to refinance loans.

[@TheMoeHawk]

So wouldn't Universal Basic Income increase GDP? Because based on the formula GDP=C+I+G(X-M) , the more money people have the more they are able to spend on goods. The more money the Government pays out the more it looks good for the GDP which would attract investors thus increasing the "I" in the formula equaling to a higher GDP.

[@tonymudau3005]

The problem is inflation. More money means higher prices. So you have to balance that.

[@brarob2089]

Lots of spending all at once devalues the currency which develops inflation, which is the last thing you want in a recession. Its what happened to germany after ww1 and we all know what that led to.

[@Pineconepicker1]

The GDP is a false number. Another country with the same population, doing exactly the jobs but 1 is paid $2/hour and the other being paid $10./hour, how does this make sense?

[@tunim4354]

GDP tells you about a country's income. Income is low, GDP obviously went down. This video is misleading. GDP can't predict anything. It never did.

[@profitmix441]

81 million votes

[@holograms9859]

Solution : war

[@lightningmcseed7303]

I mean you're not wrong...

[@manvircheema9555]

Jpow watching this video: look at these fools ... brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

[@HuyNguyen-yn9il]

Oh, the G variable , so give more paychecks to keep GPD higher , don't spend in anything else for stimulus , just deposit straight to Americans' bank account. Lol

[@HJima]

yangngang

[@MS-gl5mg]

Should've been longer and more informative.

[@shadoninja]

...

[@Stephen..]

We need you ta tell us’

[@EvilChris2010]

So much concern for measures of economic activity and so little concern for what that economic activity means for the lives of individuals. Yikes.

[@kn9ioutom]

GOP GREAT RECESSION TURNED INTO DEPRESSION !

[@apt62]

Trump says we are good man

[@superstarjagan5140]

Please shift your currency to crypto currency and you can print e-currency out of thin air ......trillions of dollars

[@financeinsights5728]

Short video on WTI vs Brent oil: kzbin.info/www/bejne/iaDYeHakqtqlpdU

[@gracethroughchrist4949]

"Economists" ...lol...puhleeze

[@nicholaskhorasani7374]

I'm disappointed in this video. You do not talk about how the increase in stockbuy backs has decreased the overall investment by companies.

[@nerad1994]

Maybe this pandemic will prevent trumps re election

[@bishboshs]

Such a stupid premise for a video. The reason it's important to tell us if there is a recession is because that's the definition of a recession. 2 consecutive quarters of negative GDP growth. It's not as was mentioned "two consecutive quarters of growth". A recession is certainly not two consecutive quarters of negative GNI growth...or earnings growth... or income growth.

[@biomanization]

4 minutes of lost time I’ll never get back