Re:Look at median, and not mean GDP per capita
by nine_k on Monday August 08, 2022 @08:20AM
(#32384607)
GDP is a measure of all exchanged values.
Income is a measure of retained value after all exchanges have had place.
If I buy a truckload of ice cream for $1000, sell it for $2000, and pay the trucker $200, the GDP is increased by $1000 + $2000 + $200 = $3200, while my income is merely $1000, and the trucker's, $200. Our profits are even lower; mine is $800, and the trucker's is $200 minus fuel costs and road tolls.
Income is a measure of retained value after all exchanges have had place.
If I buy a truckload of ice cream for $1000, sell it for $2000, and pay the trucker $200, the GDP is increased by $1000 + $2000 + $200 = $3200, while my income is merely $1000, and the trucker's, $200. Our profits are even lower; mine is $800, and the trucker's is $200 minus fuel costs and road tolls.