The attached Figure is the GDP normalized by total population. There are several interesting facts. First it is almost never shown this way. Second, the GDP per PoP is still well above Q1 2006! Yes it is dropping but it is still well above three years ago. Hardly a Depression, yet. Third, the GDP per PoP change is much more than the GDP change in the Q4 2008 numbers. That may send a chill. It is -5.22 % down. annualized which is much more than the announced number for the total! Fourth, all of these numbers should be normalized for the total PoP in all cases.
Monday we will be doing a line by line analysis of the Stimulus Package, Just a quick heads-up. The School Lunch Program has been increased an additional $20 Billion. That is about $6 Billion per year over the period. There are 3 million unemployed extra. This means a $2,000 per unemployed person for school Lunch! Assume 2 children per unemployed, that is $1,000 per child and assume we have 200 days per school year, that is $5 per day for lunch at school. Must be a lot more than Peanut Butter sandwich and container of milk, Oh I forgot it is the Union Help and then their Pensions, not yet factored in, to pay for this. The Tail costs that are NOT included will raise their heads in the next ten years, that way we will all go bankrupt at once!
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