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No, if you contract your services to that company, your contribution to GDP gets cancelled out by the intermediate consumption of that company purchasing your s
by ummonk 4y ago
No, if you contract your services to that company, your contribution to GDP gets cancelled out by the intermediate consumption of that company purchasing your services. The GDP is the same either way.
- kornhole 4y agoHow does it get cancelled out? Take this example: Company A has $1M revenue from creating services or products. Then my company B invoices company A for $250K. GDP is $1.25M. I do not report who I billed to the government who compiles GDP. So I don't see how they can not include my services as part of GDP.
- ummonk 4y agoCompany A reports $250K in non-employee-compensation expenses to the government. This intermediate consumption gets removed from their share of the GDP, so the total is ($1M-$250K) + $250K = $1M.