GDP can rise while households struggle

GDP is a useful snapshot rather than a complete measure of economic welfare. A joke about two economists making offsetting payments illustrates how recorded transactions can enlarge output without leaving either participant better off. Strong US stock indexes and companies such as Nvidia during and after the COVID-19 pandemic are then contrasted with the weaker experience of the average household. Disruption around SNAP benefits gives a concrete warning that aggregate output and financial markets can look healthy while many people remain economically vulnerable.