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gross domestic product

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Overview

Gross domestic product (GDP) is a monetary measure of the total market value of all of the final goods and services which are produced and rendered during a specific period of time by a country or countries. GDP is often used to measure the economic activity of a country or region. The major components of GDP are consumption, government spending, net exports, and investment. Changing any of these factors can increase the size of the economy. For example, population growth through mass immigration can raise consumption and demand for public services, thereby contributing to GDP growth. However, GDP is not a measure of overall standard of living or well-being, as it does not account for how income is distributed among the population. A country may rank high in GDP but still experience jobless growth depending on its planned economic structure and strategies. Dividing total GDP by the population gives an idealized rough measure of GDP per capita. Several national and international economic organizations, such as the OECD and the International Monetary Fund, maintain their own definitions of GDP.

From Wikipedia (CC BY-SA 4.0).

Notable quotes

“Basically, GDP is a concept of value added. It is the sum of gross value added of all resident producer units (institutional sectors or, alternatively, industries) plus that part (possibly the total) of taxes, less subsidies, on products which is not included in the valuation of output. Gross value added is the difference between output and intermediate consumption.”
— (1993) [http://books.google.com/books?id=4VenznvjTcwC&pg=PA41 System of National Accounts 1993) (EPub), p. 41
“We are consuming the past, present, and future of this biosphere, our only home, in an unthinking rush for profits and GDP that we call 'progress', belying our species name homo sapiens.”
— Pavan Sukhdev in foreword to Bankrupting Nature: Denying Our Planetary Boundaries by Anders Wijkman and Johan Rockström (Abingdon, Oxon: Routledge, 2012), p. xi.
“Creative destruction can apply to economic concepts as well. And this downturn offers an excellent opportunity to get rid of one that has long outlived its usefulness: gross domestic product. G.D.P. is one measure of national income, of how much wealth Americans make, and it’s a deeply foolish indicator of how the economy is doing. It ought to join buggy.”
— Eric Zencey, in G.D.P. R.I.P., The New York Times, 9 August 9, 2009

Quotes via Wikiquote (CC BY-SA), each with its original source.

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Overview

Gross domestic product (GDP) is a monetary measure of the total market value of all of the final goods and services which are produced and rendered during a specific period of time by a country or countries. GDP is often used to measure the economic activity of a country or region. The major components of GDP are consumption, government spending, net exports, and investment. Changing any of these factors can increase the size of the economy. For example, population growth through mass immigration can raise consumption and demand for public services, thereby contributing to GDP growth. However, GDP is not a measure of overall standard of living or well-being, as it does not account for how income is distributed among the population. A country may rank high in GDP but still experience jobless growth depending on its planned economic structure and strategies. Dividing total GDP by the population gives an idealized rough measure of GDP per capita. Several national and international economic organizations, such as the OECD and the International Monetary Fund, maintain their own definitions of GDP.

From Wikipedia (CC BY-SA 4.0).

Notable quotes

“Basically, GDP is a concept of value added. It is the sum of gross value added of all resident producer units (institutional sectors or, alternatively, industries) plus that part (possibly the total) of taxes, less subsidies, on products which is not included in the valuation of output. Gross value added is the difference between output and intermediate consumption.”
— (1993) [http://books.google.com/books?id=4VenznvjTcwC&pg=PA41 System of National Accounts 1993) (EPub), p. 41
“We are consuming the past, present, and future of this biosphere, our only home, in an unthinking rush for profits and GDP that we call 'progress', belying our species name homo sapiens.”
— Pavan Sukhdev in foreword to Bankrupting Nature: Denying Our Planetary Boundaries by Anders Wijkman and Johan Rockström (Abingdon, Oxon: Routledge, 2012), p. xi.
“Creative destruction can apply to economic concepts as well. And this downturn offers an excellent opportunity to get rid of one that has long outlived its usefulness: gross domestic product. G.D.P. is one measure of national income, of how much wealth Americans make, and it’s a deeply foolish indicator of how the economy is doing. It ought to join buggy.”
— Eric Zencey, in G.D.P. R.I.P., The New York Times, 9 August 9, 2009

Quotes via Wikiquote (CC BY-SA), each with its original source.