4 ms·

Gdp is not income, it is a measure of economic activity.

ausudhz 4y ago
Which is rather equivalent to income. Does GDP include any asset? No. Does include the annual turnover of the economy? Yes Is similar to the income for a person or the gross income for a company
- user_named 4y ago
  No, turnover is not income
  - ausudhz 4y ago
    Omg why you don't Google instead of saying things that you know nothing about > Turnover is the net sales generated by a business, while profit is the residual earnings of a business after all expenses have been charged against net sales https://www.accountingtools.com/articles/what-is-the-difference-between-turnover-and-profit.html https://www.accountingtools.com/articles/what-is-the-differe... So yes, turnover for a business is like the income for a person (and income is always before tax, after tax is called net income)
andsoitis 4y ago
“Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports).” (Emphasis mine) https://data.oecd.org/gdp/gross-domestic-product-gdp.htm https://data.oecd.org/gdp/gross-domestic-product-gdp.htm
- simplotek 4y ago
  > As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports). It's my understanding that the "income" interpretation refers to tax income, because each transaction is taxed. Take a look at your quote. It says it's also the "total amount spent on final goods and services". If you buy bread for 1€ and ham for 1€ and sell ham sandwiches for 6€, no one had income of 8€. At most, the state charged VAT on your 2€ purchases and 6€ sales.
  - dragonwriter 4y ago
    > It's my understanding that the "income" interpretation refers to tax income No, its aggregate income, not tax income. And its not an “interpretation” of GDP, GDP is by design a national income measure, not some other kind of measure with an income “interpretation”.
  - maratc 4y ago
    You had income of 6€, the bread seller had income of 1€, and the ham seller had income of 1€, so the three of you combined did have income of 8€.
    - simplotek 4y ago
      > (...) so the three of you combined did have income of 8€. The whole point is that that is not income, but just an aggregate value of all transactions within an economy. Money exchanged hands, which is not the same as someone's income.
      - ausudhz 4y ago
        You're really trying hard to disprove the definition. GDP is the country's income. Full stop is not that hard. Also you're wrong twice, because also the aggregated value of all the transactions of an individual sums up to something that is called income. You're just being pedantic for no reason. I can have many income sources: work, royalty, dividends, rent, selling books etc. To use your analogy the are all transactions with my personal economy (made by myself, one person) and it's called: income
dragonwriter 4y ago
> Gdp is not income GDP is the main national income measure. https://www.econlib.org/library/Enc/NationalIncomeAccounts.html https://www.econlib.org/library/Enc/NationalIncomeAccounts.h...

Which is rather equivalent to income. Does GDP include any asset? No. Does include the annual turnover of the economy? Yes Is similar to the income for a person or the gross income for a company

user_named 4y ago
No, turnover is not income
- ausudhz 4y ago
  Omg why you don't Google instead of saying things that you know nothing about > Turnover is the net sales generated by a business, while profit is the residual earnings of a business after all expenses have been charged against net sales https://www.accountingtools.com/articles/what-is-the-difference-between-turnover-and-profit.html https://www.accountingtools.com/articles/what-is-the-differe... So yes, turnover for a business is like the income for a person (and income is always before tax, after tax is called net income)

andsoitis 4y ago

“Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports).” (Emphasis mine) https://data.oecd.org/gdp/gross-domestic-product-gdp.htm https://data.oecd.org/gdp/gross-domestic-product-gdp.htm

simplotek 4y ago
> As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports). It's my understanding that the "income" interpretation refers to tax income, because each transaction is taxed. Take a look at your quote. It says it's also the "total amount spent on final goods and services". If you buy bread for 1€ and ham for 1€ and sell ham sandwiches for 6€, no one had income of 8€. At most, the state charged VAT on your 2€ purchases and 6€ sales.
- dragonwriter 4y ago
  > It's my understanding that the "income" interpretation refers to tax income No, its aggregate income, not tax income. And its not an “interpretation” of GDP, GDP is by design a national income measure, not some other kind of measure with an income “interpretation”.
- maratc 4y ago
  You had income of 6€, the bread seller had income of 1€, and the ham seller had income of 1€, so the three of you combined did have income of 8€.
  - simplotek 4y ago
    > (...) so the three of you combined did have income of 8€. The whole point is that that is not income, but just an aggregate value of all transactions within an economy. Money exchanged hands, which is not the same as someone's income.
    - ausudhz 4y ago
      You're really trying hard to disprove the definition. GDP is the country's income. Full stop is not that hard. Also you're wrong twice, because also the aggregated value of all the transactions of an individual sums up to something that is called income. You're just being pedantic for no reason. I can have many income sources: work, royalty, dividends, rent, selling books etc. To use your analogy the are all transactions with my personal economy (made by myself, one person) and it's called: income

dragonwriter 4y ago

> Gdp is not income GDP is the main national income measure. https://www.econlib.org/library/Enc/NationalIncomeAccounts.html https://www.econlib.org/library/Enc/NationalIncomeAccounts.h...