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But the velocity of money doesn't change that. $1 spent is $1 of income no matter how or where it's spent. Every transaction necessarily has a buyer and a sell
by missedthecue 4y ago
But the velocity of money doesn't change that. $1 spent is $1 of income no matter how or where it's spent.
Every transaction necessarily has a buyer and a seller
- adam_arthur 4y agoIncome has nothing to do with GDP. Maybe do some research before littering the comments with uneducated takes. And real income/GDP is what matters more in the end anyway. E.g. nominal wage increases aren't beneficial to people if their spending power is in decline
- missedthecue 4y agoAre you confusing the economic term "income" with wages?
- adam_arthur 4y agoWe're taking about the colloquial definition of income as per the author's mistake with wages. And yes even income of producers is not GDP, because you have to factor in imports/exports
- tremon 4y agoThe same dollar changing hands every day for a week contributes $7 to the national GDP. A dollar changing hands only once contributes $1 to the national GDP.