Wednesday, July 31, 2019

GDP versus Wealth.

This post discusses the differences between GDP and Wealth and gives these numbers for the United States.

Discussion:


Wealth is the value of all assets minus the value of liabilities.   It is a stock, a figure at a point in time. 
At the end of 2018 wealth in the United States was around 98 trillion.


GDP is the value of all economic activity during a period of time.   The period of time could be a day, a week, a month, a quarter, a year, or even longer.  It is a flow, not a  stock.  The value of the flow depends on the length of the time period.

The most recent estimate of GDP for 2019, the value of all economic activity in the United States in 2019, is 21.3 trillion.

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