What is Occupy Wallstreet?

[Jester]

It is a measure of year over year growth, so it continuously retains it's value as an index.

This is exactly what it *doesn't* do. An index ... well, it indexes. It gives us a baseline from which to measure things. This just tells us how things are relative to how they were last year - a bad year following a terrible year is the same as an amazing year following a great year.

If the economy resets to 2006 levels, then grows to 2007 levels, this index would still reflect growth. It's value is only as a leading indicator of economic growth (strength). So, in mathematical terms, it is more of a 2nd or 3rd level derivative, not measuring position, but velocity, or acceleration.

It measures spending relative to last year's spending. Is that really what we want to know? Especially for (going back to the whole point of this) calculating when we're back to "normal" demand, whatever that is? Presumably that's a level, not a velocity, or acceleration?

They collect indexes (housing, automotive, food, etc) across the spectrum of consumer purchases, and make a master index that is more predictive of consumer "interest". Since consumer's are key to purchasing products that businesses sell, they are a leading indicator of economic growth. It is more than a survey of consumer sentiment, it is a measure of consumer demand.

Okay. But its actual workings are obscure to us, no? We just have to kind of take their word for it that it's something sensible?

-Jester