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this post was submitted on 11 Jun 2026
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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