Following up on the whole subsidy issue, GDP versus GDI though here with a determined eye on the Net Operating Surplus (NOS). The way this stuff is accounted for in the government’s (BEA) scheme makes it very confusing; the subsidies are subtracted from indirect taxes, therefore they reduce GDI.
The more subsidies, the less aggregate income?
It’s not done on purpose, as if they are trying to hide something or cover anything up. On the contrary, there is actually a bit of elegance to this. The BEA is being rather helpful in this regard. Read more…..
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CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines, and what to watch as the coronavirus pandemic continues to keep most of America on lockdown. Apple and Amazon both reported quarterly earnings, and CNBC’s Christina Farr breaks down the latest news on contact tracing, which is bound to play a big role in plans to re-open the American economy.