Gross Domestic Product (GDP) is a fascination that has encompassed the minds of many. Unfortunately, understandings of GDP are not in line with economic realities. This author, like potentially many others, used to be of the mind that GDP was a cumulative figure. This is not the case. This paper discussed GDPs annual nature and analyzes other related issues.
GDP is an annual figure, go figure! It measures the final value of all goods and services in a specific period, usually annually. That is to say that the United States does not only have trillions of dollars that it has made in its history. It made around 20 trillion USD, just last year! That is a remarkable difference in fortunes.
Why is knowing this important? First and foremost, knowing the true potential of an economy should develop a hunger and desire to succeed in business, or at least to become financially secure and independent. With a select number of nation’s making trillions a year, what is achievable in terms of economic success is simply immense. Issues like inequality could be a thing of the past if people were given the opportunities they could capitalize on. An era of prosperity could all start with the common knowledge of global economic output.
Finally, knowing the definition of GDP is important for educational reasons. Having studied economic courses, it was a surprise to find out that GDP was not a cumulative figure as once thought. Education is the gateway to the future, as they say. What better way to learn than to establish accurate understandings of common terms? Surely, that is up there with skill-gaining and other knowledge attainments.
In conclusion, GDP is often an annual, and not cumulative, measure. Knowing this makes for the possible realization of economic potential. It is also useful, in educational terms, to know this fact. Hopefully, people can empower themselves with knowledge and lead the way to an era of prosperity. Humanity deserves that much.