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Economic

Hi, 

I would like to know what theory in economics suggest that with an increase in GDP there is a consequential multifold increase in discretionary income?

real gdp has been increasing 3 percent per year. but real household income has been roughly flat since 1960s. 

I love my cheese. I got to have my cheddar.

Nerdyblop wrote:

real gdp has been increasing 3 percent per year. but real household income has been roughly flat since 1960s. 

Real Median HH Income (+0.6%pa, 37%)

No photo description available.

Real Mean HH Income (+1.1%pa, 72%)

No photo description available.

#FreeCVM #FreeTurd #2007-2017

Aastha Jha wrote:

Hi, 

I would like to know what theory in economics suggest that with an increase in GDP there is a consequential multifold increase in discretionary income?

There’s no theory that suggests a “multifold increase”.  Over time based on the simple math of the GDP equation, gains in GDP will ultimately be divided between people and corporations assuming governments run neutral to deficit budgets like a non-profit (vs perpetual surplus).  Over time the ratio between people and companies will vary but should be semi range bound since neither will work for free in the current system.  In other words, over a very long time period, corporate profits and incomes should grow AT GDP levels, although in the past few decades the ratio of GDP going to households has fallen as corporate productivity has risen.

#FreeCVM #FreeTurd #2007-2017

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.

Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well. In the United States, for example, the government releases an annualized GDP estimate for each quarter and also for an entire year. Most of the individual data sets will also be given in real terms, meaning that the data is adjusted for price changes, and is, therefore, net of inflation.

OP: Yeah tell Bernie Sanders that.

Black Swan wrote:

Nerdyblop wrote:

real gdp has been increasing 3 percent per year. but real household income has been roughly flat since 1960s. 

Real Median HH Income (+0.6%pa, 37%)

No photo description available.

This shows that the baby boomer, no matter how much do they complain about everything, had the best opportunities to build wealth. Millennials on the other hand are living paycheck and paycheck and mostly in a bubble that is going to burst. With record low savings across the board, student debt, and overpriced rent and housing we are creating a whole new generation of slaves. Look at Toronto, there are thousands of grads coming out of school with $30k in debt and getting $55k in salaries with no hope to ever buying their own property. Salary hikes are capped at inflation but spending in a real sense can increase up to 10-15% per year. People are going backwards. 

Real Mean HH Income (+1.1%pa, 72%)

No photo description available.

millenial are by far the most unproductive generation ever. but i do not blame millenials. i blame the older generation. bad parenting.

I love my cheese. I got to have my cheddar.

Nerdyblop wrote:

millenial are by far the most unproductive generation ever. but i do not blame millenials. i blame the older generation. bad parenting.

You trying to say that my inheritance is not a retirement account?

¯\_(ツ)_/¯ It be like that sometimes.

lol wuttttt

I love my cheese. I got to have my cheddar.