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

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[–] -1 points 1 month ago

I have never said anything remotely close to "The wages are the only component" If you have to be dishonest about what I've said in order to make your point then you probably don't have a very good point. What I have said is that the wages are 100% included in the calculation. So if $50 is paid in wages then GDP goes up by $50 and that is absolutely true

And you fundamentally misunderstand the point I'm making. I never said anything about wages being the only cost. What I said originally was that the entirety of their wages are included in the value of the GDP and nothing about the fact that other costs are also included changes that fact. Which demonstrates that your original claim is false considering all wages are included with regards to those calculations in those sectors

I'm feeling like perhaps this is a little bit beyond your grasp. The original claim is that gDP minus income means something and my counterpoint which you are not getting is that gDP actually includes income for a significant portion of the sector therefore your statement is wrong. It doesn't have to be the only input for that to be true

You can say anything is a distribution of profit. Wages are in distribution of profit, the company makes money and uses a portion of it to pay its employees. The company pays the shareholders in exchange for the money that the shareholders have paid to own a portion of the company. An employee transfers money from the company account to his personal account. This is absolutely a cost of doing business. Just like repaying a loan is a cost of doing business

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