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Re: OT Cheney - Cutting Gas Tax Stupid

Some choose GDP for their own reasons but GNP is the true barometer

Hint: Look around; we live in a global economy and the US is the world largest, most stable economy. Was your Toyota assembled in the US, of what Toyota says are "world sourced parts" or was it made entirely out side of the US of all foreign parts? LOL

> You're the only person still using GNP instead of GDP, and I doubt you > know why economists switched to GDP in the 1970s and 1980s. > > Just where do you get all your wrong information? You're outright > sloppy, again and again. > > > > >
Reply to
Mike hunt
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LOL. The globalized economy is why economists switched from GNP to GDP.

GNP measures the total annual net output _of_ a nation, regardless of where the output was produced. That's not too bad to calculate when all of a nation's factories are located within its borders, but it is hard if they're spread around the world and when accounting and taxation are handled differently in each place and companies try to shift costs and taxes to nations where those factors are most favorable. Because this causes difficulties in accounting, a few decades ago economists started to favor GDP, which measures the total annual net output produced _within_ a nation, regardless of whether it was produced by companies incorporated there or by foreign companies operating within that nation.

Suppose a company has factories in the US but is incorporated in Bermuda for legal and tax reasons. US GDP will measure what those factories produce, while the "true barometer" of GDP will say those factories contributed little to the US economy but a great deal to Bermuda's.

Reply to
larry moe 'n curly

Does that mean you think the Toyotas assembled in the US, of imported parts, are considered to be made in Japan? LOL

Reply to
Mike hunt

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