2 ms·
GDP and USD are not the same thing. GDP measures production over a year (a timespan which is simply an artifact of our planet) in US dollars. It's a rate. USD
by ChrisLomont 5y ago
GDP and USD are not the same thing. GDP measures production over a year (a timespan which is simply an artifact of our planet) in US dollars. It's a rate.
USD is the sum of US dollars in use. It's an amount.
Comparing a rate (defined by an arbitrary local constant) to an amount doesn't make much sense.
- joe_guy 5y agoMy googling for the sum of USD hasn't been fruitful if you don't mind providing a link. I do take issue calling an anual arbitrary. It's a very common denominator used in finances. ie, you pay taxes anually. Don't attempt to tell the government it's arbitrary. To be pedantic, everything is arbitrary, even the value, the amount of, etc of USD, invadating this entire discussion. As a society we agree upon things. A year is not an arbitrary unit of time.
- marcosdumay 5y agoLooks like the US has a tank with the same "name" as the real-money supply. But here's a link: https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 Personally, I doubt anybody putting much relevance on M1 or M1'. But that's a 20% change in 1 year, what is quite large and probably has had some impact somewhere.
- ChrisLomont 5y agoAnnual is arbitrary since it's a random fact of earth. If nothing else changed except we just happened to have a 6 month year, then GDP is half, and comparisons of that rate to an amount would now be completely different. Comparing them is like comparing gallons as a number and speed of a car as a number, and ignoring that speed in mph or km/h or m/s will give different answers. Sure there are relations, but they're not comparable as ratios.