The Effect of Decreasing GDP

Lastly, we have the effect of decreasing GDP. GDP stands for Gross Domestic Product, which is the total value of goods produced and services provided over the course of one year in a nation. This could include bananas produced, haircuts provided, motorcycles produced, or taxi rides provided. From those four examples, you can conclude that GDP is the umbrella for many different things that the United States produces and provides. The amount of GDP exemplifies the state of the economy for a certain nation. For instance, the higher the GDP, the more successful the economy of the nation is. France will have a higher GDP than Zimbabwe, and the United States will have a higher GDP than both. On average, during government shutdowns, GDP decreases by 0.3% per week (Goodman, 2013). The 0.3% might not seem like a large percentage of anything at all, but the size and importance of America’s GDP, this is a devastating decrease. Just 0.3% of a decrease per week can set the United States back in a major way, with the nation having to catch up to where they once were.