GDP--- or Gross Domestic Product, is the
final snapshot measure of a nation’s consumer spending, government spending,
investment spending, and its net exports (exports minus imports) for the year.
This is called the expenditure approach. So as to not double count things, it
does not include sales of goods and services used to produce other goods and
services (intermediate input gathering transactions). It is interesting to note
government
investment is included only in the category of "government
spending". There are “state GDP”
calculations also, and these are used to figure the US GDP, at least according
to one legend.
The GDP measure can be adjusted for inflation in the attempt to find the
real
GDP. There are many other
ways to calculate and estimate GDP and other
related/similar statistical measures such as GDS, GNP,
GNI and “GDP
growth”[1].
One way to calculate “GDP growth” for a particular year is to divide
the GDP of the year exactly before it in time by the GDP of this said particular
year, and then subtract this result from 1. The growth is a percentage. “GDP
growth” and “GDP growth” estimations as well are used heavily in global
investment decisions and speculation in the markets. There is always a wee bit
of chatter about it. It is seen as the real wealth of a nation, and slow GDP
growth is seen as a weakness, focusing the concentration on what happens only in
the short run. Much GDP
growth estimating goes on and on every day.
It is interesting to note during the last great period of
globalisation that positive balances of trade measured in gold, or positive net
exports as it were, used to be considered the crown jewel of a nation’s wealth.
It is called mercantilism. The founding father of economics wrote the “Wealth of Nations”[2]in an
attempt to turn this line of thinking.
And now there are many advocates to create a better way of calculating
a nation’s well being: indicators measuring internal well being or happiness, or
some better way to make certain all the mates are okay, not great maybe but good
enough. With changes in the demographics of the populations and a great
intertwining of people around the world riding a great wave of new
infrastructure...the electronic computers...perhaps GDP growth should be taken
with a grain of salt, or at least used in conjunction with measurements that
tell a better story.
If growth is an exponential curve, then there is an interval before take-off where things don’t seem
to be budging. On the other hand, some mates say growth is really a Fibonacci series. ‘Tis a legend. See also aggregate demand.
[1] *** Much appreciation to Professor K,
Wikihow.com, Goldman Sachs, BEA, about.com , www.sjsu/faculty/watkins/gdp.htmWikipedia and to the World Bank on 07/01/2014,
7/04/2014, 7/08/2014 for help with this definition
[2] Thank
you to Professor Smith
final snapshot measure of a nation’s consumer spending, government spending,
investment spending, and its net exports (exports minus imports) for the year.
This is called the expenditure approach. So as to not double count things, it
does not include sales of goods and services used to produce other goods and
services (intermediate input gathering transactions). It is interesting to note
government
investment is included only in the category of "government
spending". There are “state GDP”
calculations also, and these are used to figure the US GDP, at least according
to one legend.
The GDP measure can be adjusted for inflation in the attempt to find the
real
GDP. There are many other
ways to calculate and estimate GDP and other
related/similar statistical measures such as GDS, GNP,
GNI and “GDP
growth”[1].
One way to calculate “GDP growth” for a particular year is to divide
the GDP of the year exactly before it in time by the GDP of this said particular
year, and then subtract this result from 1. The growth is a percentage. “GDP
growth” and “GDP growth” estimations as well are used heavily in global
investment decisions and speculation in the markets. There is always a wee bit
of chatter about it. It is seen as the real wealth of a nation, and slow GDP
growth is seen as a weakness, focusing the concentration on what happens only in
the short run. Much GDP
growth estimating goes on and on every day.
It is interesting to note during the last great period of
globalisation that positive balances of trade measured in gold, or positive net
exports as it were, used to be considered the crown jewel of a nation’s wealth.
It is called mercantilism. The founding father of economics wrote the “Wealth of Nations”[2]in an
attempt to turn this line of thinking.
And now there are many advocates to create a better way of calculating
a nation’s well being: indicators measuring internal well being or happiness, or
some better way to make certain all the mates are okay, not great maybe but good
enough. With changes in the demographics of the populations and a great
intertwining of people around the world riding a great wave of new
infrastructure...the electronic computers...perhaps GDP growth should be taken
with a grain of salt, or at least used in conjunction with measurements that
tell a better story.
If growth is an exponential curve, then there is an interval before take-off where things don’t seem
to be budging. On the other hand, some mates say growth is really a Fibonacci series. ‘Tis a legend. See also aggregate demand.
[1] *** Much appreciation to Professor K,
Wikihow.com, Goldman Sachs, BEA, about.com , www.sjsu/faculty/watkins/gdp.htmWikipedia and to the World Bank on 07/01/2014,
7/04/2014, 7/08/2014 for help with this definition
[2] Thank
you to Professor Smith