Gross Domestic Product (GDP) measures the total value of goods and services produced in an economy. When GDP grows, it's often reported as good news. But GDP growth does not automatically mean that typical families are better off.
The Problem with Averages
GDP per capita—the average economic output per person—can rise even when most households see no improvement. This happens because GDP includes corporate profits, investment gains, and income that flows disproportionately to the highest earners.
Economist Joseph Stiglitz has documented cases where median household income fell even as GDP per capita rose. The gains went to the top, while typical families stagnated.
What We Measure Instead
The People's Economy Hub focuses on median measures—the middle of the distribution—rather than averages. The median household represents the typical American family, not a statistical average skewed by billionaires.
Why This Matters
When policymakers and media report "the economy is strong" based on GDP, it can conflict with what families actually experience. Our metrics aim to bridge that gap by focusing on purchasing power, essential costs, and financial resilience—things that affect everyday life.