Digital Media Center
Bryant-Denny Stadium, Gate 61
920 Paul Bryant Drive
Tuscaloosa, AL 35487-0370
(800) 654-4262

© 2024 Alabama Public Radio
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Episode 522: The Invention Of 'The Economy'

A bread line forms outside of the Rescue Society in New York City in 1929. "Brother, Can You Spare a Dime?" directly confronted the hardship of the Great Depression.
Wikimedia Commons
A bread line forms outside of the Rescue Society in New York City in 1929. "Brother, Can You Spare a Dime?" directly confronted the hardship of the Great Depression.

The Great Depression brought unemployment, hunger and anxiety, but it also brought us a great new acronym: The GDP. In the midst of the United States' worst economic downturn — the GDP, Gross Domestic Product — was born. It was a number and an idea that changed the way we talked and thought about the world.

Until the concept of GDP came around, no one really had figured out a way to measure what was happening, economically. There was no way to compare one year to another.

In 1934, Congress asked a group of economists to solve that. Later that year, those economists published a paper called "National Income, 1929-1932." The report, by Simon Kuznets and others, became a best-seller in a matter of weeks.

And soon enough, you couldn't turn on the radio without hearing these numbers and what they were measuring, this new thing called the economy.

On today's show: How we started boiling down entire nations and their economies into a single number. And how that number made people think they could control a country's destiny.

Music: "Warehouse Rockers" and "College Car." Find us: Twitter/ Facebook.
Subscribe to our show on iTunes or PocketCast.

Copyright 2021 NPR. To see more, visit https://www.npr.org.

News from Alabama Public Radio is a public service in association with the University of Alabama. We depend on your help to keep our programming on the air and online. Please consider supporting the news you rely on with a donation today. Every contribution, no matter the size, propels our vital coverage. Thank you.