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
The GDP includes all goods and services produced in a time frame. If you buy equipment yes it is a cost but it doesn’t change the equation because that equipment is a product from a vendor that is also included in GDP (unless it’s purchased from an international vendor). I believe servicing debt is a service and included in GDP. I’m sort of trying to back into the correct number using gross figures. The way you are describing, which is the way each company does it, is the correct way to do it.
Yeah i guess you’re right, if you look at it like that it probably is accounting for most reinvestment of profit in a given business because they would have to spend that on something. My gut feeling tells me it can’t be that simple but I have no evidence to suggest why it isn’t, I’m also an engineer not an economist.