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.
Real Median HH Income (+0.6%pa, 37%)
Real Mean HH Income (+1.1%pa, 72%)
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.
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.
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?
lol wuttttt