Re:Look at median, and not mean GDP per capita
by adam_arthur on Monday August 08, 2022 @10:04AM
(#32385513)
This is producers income, not wages as is obviously what is being referenced in this thread, and the layman's definition of income
And dollars spent on imports do not increase local GDP
Re:Look at median, and not mean GDP per capita
by JumpCrisscross on Monday August 08, 2022 @10:37AM
(#32385920)
> producers income, not wages
TNI is the sum of all "sum of all wages, rent, interest, and profits." Wages are in GDP because the purchase and sale of labour is a transaction. Even in the expenditure approach, G includes government employees' wages.
Did you click the CFI link? The "What is the GDP Formula?" section is less than 200 words.
> dollars spent on imports do not increase local GDP
No. Hence the NX/NFI border adjustment. (In the income approach we count foreigners' domestic incomes and citizens' foreign incomes instead of exports and imports.)
Re:Look at median, and not mean GDP per capita
by adam_arthur on Monday August 08, 2022 @08:34PM
(#32392812)
Wages being included as a component in GDP calculation does not make wages equal to GDP.
Dollars spent by one are earned by another. This is captured in the twin calculations of GDP: the expenditure approach and the income approach [1]. (NX and NFI being the border adjustment variables.)
[1] https://corporatefinanceinstitute.com/resources/knowledge/ec...