Gross Domestic Income - GDI
Categories: Econ, Tax, Ethics/Morals
Gross Domestic Income (GDI) is all of the income earned by making goods and providing services, added up, by in all sectors of an economy within a region (like a state or country).
GDP adds up expenditures, while GDI adds up what’s being made in wages and salaries (not things being sold). Two sides of the same coin, kind of (except just income).
In the technical sense, GDI is can be calculated in different ways. No matter which way they do it, the gross domestic income measure is used by the Federal Reserve and the Bureau of Economic Analysis to measure the overall economy (like GDP). It can also be used to calculate ratios...like, to see where workers and company owners get paid relative to each other. GDI can also help economists see what’s going on when the economy is slumping in its chair like a whiny teenager.