GDP increased 33.1 % in the third quarter and decreased 31.4 in the second quarter.
Riddle me this batman. Did the economy grow from the beginning of the second quarter to the end of the third quarter?
Many would say yes. After all, the third quarter increased more than the second quarter, but they would be wrong!
What!? Is this the new math? Not at all.
Take a dollar that decreases 31.4% (assuming you could have tenths of a cent!). $1 * (1-.314)= $.686 . You have 68.6 cents at the end of the second quarter.
Now take that $.686 times 33.1% (.686*(1+.331)). It equals .913066. So you started with a dollar at the beginning of the second quarter and ended the third quarter with 91.3 cents. You're down!
No new math here. Just good old fashion, standard mathematics. Your mind can play tricks on you if you aren’t aware.
Be smart, be well-read, be self-aware and be successful.
