That’s just to remind you that gross domestic product is equal to personal consumption expenditures plus government expenditures plus business investment plus net exports, i. e. exports less imports. When I say that I think we need more domestic business investment, I’m making a statement about how I think that GDP should grow. Ditto when I say that I think we should export more. If personal consumption expenditures or government spending rises and so do imports, that will result in less GDP growth than otherwise might be the case.
If Okun’s law, the rule of thumb that suggests a positive correlation between GDP and employment, is broken, I think it’s pretty clear that the reason that it’s broken is that consumption expenditures (either private or government) and business investment aren’t resulting in increased employment.
GDP has grown all through the alleged recovery. How fast would it have to grow to put a dent in U. S. unemployment?