Sunday, July 6, 2014

In case you missed it yesterday

A comparison of gross output, the output consumed by production, and the net output that remains, as against Gross Domestic Product and my measure Gross Domestic Spending, which adds nonfinal business spending to GDP:

Here's the picture:

Graph #2
The blue line is U.S. Gross Output -- the measure of what we produce in a year.

The red line is intermediate consumption -- the measure of output consumed in the process of producing output. It is almost half Gross Output. The red is almost half the blue.

The green line is output left over after using up output (red) to produce output (blue). The green line is just a little over half the blue. The red line is just a little under half; the green is just a little over.

The gold line is GDP. It is approximately equal to the green. The gold line, we call it "gross" domestic product, but really it is the part of output left over after using output to produce output. Almost the same as the green line. It differs for reasons you can read at Wikipedia.

The brown line is Gross Domestic Spending. It is GDP plus the business spending that is written off as tax deductions in the process of producing output.

Data sources for Graph #2 --
Blue, Red, Green: UNSNA via UNdata.
Gold: FRED.
Brown: Arthurian.

Here's the Zoho.

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