The second way of estimating GDP is to use "the sum of primary incomes distributed by resident producer units". If GDP is calculated this way it is sometimes called Gross Domestic Income (GDI), or GDP (I). GDI should provide the same amount as the expenditure method described later. (By definition, GDI = GDP. In practice, however, measurement errors will make the two figures slightly off when reported by national statistical agencies.)
- 1/ "labor" number includes wages/salaries + benefits
- 2/ labor portion peaked in 1969
- 3/ wage/salaries portion peaked at same time; has dropped more than total labor portion, as bigger piece of that portion has become benefits (Payroll Tax contributions, Health Insurance).
- 4/ housing income has varied a lot over long period of time. Was particularly low during 1965-1990. So increase since then just brings it back to levels that were normal until 1965.
- The exact values of the labor and capital shares depend on the extent to which proprietors’ income counts as labor. However, despite some methodological differences, this examination of shares of GDI leads to the same conclusion as Bridgeman’s finding. Labor compensation has fallen somewhat as a share of net income since its peak in the 1970s, but it is within the historical range. Matthew Rognlie, using different methods, concludes that the increase in the capital share of net income comes entirely from the housing sector."
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