Reference no: EM133066826

Question: Respond to the explanations of home production changes in GDP for 2 classmates.

In particular, given the change in work location and home production during the pandemic, does it seem likely that the situation highlighted in the initial post will continue over the next 20 years? Use outside research to substantiate your claim. respond to the discussion below Gross Domestic Product

The Coronavirus pandemic has affected everyone over the past couple of years, and it has lasted a lot longer than many expected. The economics of our world have also been affected in a unprecedented way. According to Brookings.edu, "the pandemic has created a demand shock, a supply shock, and a financial shock all at once" (Bauer, Broady, Edlberg, & O,Donnell, 2020). For this week's discussion board post, we will be discussing the effects on the GDP, and the value of home production that is not currently included in GDP.

According to Investopedia, the "Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period" (Fernando, 2021). As of 2021, the United Stated GDP is $24.79 trillion. So how does home production effect the GDP today? In 2020, many people found themselves out of work, or working from home. This lead to a substantial increase in home production. "The estimated monthly dollar value of home production activities during this period [Feb - Apr '20] increased by more than $26.5 billion, or about 9.1% of the $292.6 billion drop in GDP" (Leukhina & Yin, 2020). This resulted in a decrease in the GDP by 3.5% in 2020, partially due to the lack of contribution to the economy.

To put it simply, people were doing things themselves that they would typically pay to have done previously. For example; childcare, lawn services, dry cleaning, housekeeping, all of these things were now being done by people who were either out of work, or working from home.

Another contributing factor can be the rise in unemployment as many people are taking their time before returning to the workforce. The bible teaches us much about the value of a hard days work and earning our own way through life. In Thessalonians it states, "if anyone is not willing to work, let him not eat. For we hear that some among you walk in idleness, not busy at work, but busybodies. Now such persons we command and encourage in the Lord Jesus Christ to do their work quietly and to earn their own living" (2 Thessalonians 3:10-12).

These lessons are very important in the world we live in today, when wages and job opportunities are not as secure as they once were. We must continue on and have faith that the lord will see us through these troubling times.

References: Bauer, L., Broady, K. E., Edelberg, W., & O''Donnell, J. (2021, February 02). Ten facts about COVID-19 and the U.S. economy. Retrieved January 9, 2022, Fernando, J. (2021, December 30). Gross Domestic Product (GDP). Retrieved January 9, 2022, Leukhina, O., & Yu, Z. (2021, December 09). Home Production Activity during the COVID-19 Shutdown: St. Louis Fed. Retrieved January 9, 2022,