It occurred to me after seeing a video about England’s low GDP per capita, that Income per capita is the amount workers receive (before taxes), so the difference I think, is the amount taken by companies as profit. Am I missing something? Seems right to me
I doubt it’s exactly that simple, because the GDP is the sum of monetary values of all transactions in a region/country. The most important aspect is probably that a company’s costs are not subtracted from the GDP. And there’s of course more costs than just the workers’ salaries: materials, insurance, property taxes, sales taxes just to name a few.
One company’s costs are another company’s product or service, so they are included. However it doesn’t include costs from international vendors. I’m sure there’s more I can’t think of
Imports are subtracted from gdp.
I said GDP doesn’t include purchases from international vendors. They’re not subtracted they’re never included to begin with
Subtracting imports is specifically included in the GDP calculation.
I just looked it up and you’re right. I didn’t know that