Down We Go

Just recently, the first quarter US GDP was released.  The GDP, or Gross Domestic Product, basically represents the income of the country as a whole.  This number determines how much the government can spend and in many ways, the power and prestige of the country.

This quarter, the GDP was $3.0306 trillion, almost the exact same number as four years ago.  This doesn't seem like a cause for concern, but adjusted for inflation, it is 6.5% lower than 2009.  The chart to the right indicates the GDP adjusted for inflation since 1955.  This shows how the current GDP is significantly lower than in the past.  Much of this can be attributed to the recession but also the struggling economy of the US.

Unfortunately, it is not very easy to fix the economy.  Citizens must spend in the economy and the government must reduce spending in order to decrease federal debt.  This will take time but unless it is addressed soon, there will be nothing preventing the GDP from decreasing continually.  If America wants to retain its label as a superpower, we must get our act together and fix this mess.

What do you think would be the best remedy for tour economic problems?  Has America's reputation been tarnished because of our economic issues?  Please comment below.