3 ms·
The units aren't the same. The shorthand for the units is the same. A dollar of market cap is very different from a dollar of GDP, like a cubic meter of lead i
by hodwik 11y ago
The units aren't the same. The shorthand for the units is the same.
A dollar of market cap is very different from a dollar of GDP, like a cubic meter of lead is different from a cubic meter of air.
What we're talking about is the value (or weight); the denomination (or volume) is irrelevant.
The value of a dollar GDP is considerably more tangible than a dollar market cap.
- Ari_Rahikkala 11y agoIn particular: The unit of GDP is in fact dollars/year (even if people rarely bother reporting the precise unit), whereas market cap is just dollars. They're as incomparable as velocity and position.