Gross Domestic Product (GDP)

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  • เผยแพร่เมื่อ 10 ก.พ. 2025
  • How do we measure the health of an economy? The most common way is by looking at its gross domestic product, or GDP. But what does that mean exactly? Are there any limitations to this approach? What kind of goods are counted towards GDP? Let's dive into some specifics.
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    Animation by Ignacio Triana: / unraveled
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ความคิดเห็น • 116

  • @Rakunasha
    @Rakunasha ปีที่แล้ว +28

    Hello Prof Dave. I work as a mess attendant at a marine base and well. I started my journey into science around 12 despite it really being about "lay level" well recently, an analytical chemist heares me speaking to a friend about atomic structure and how atoms line up to form structure like graphene or in crystals or well.. everything, really. He offered my a free tutorship for free about chemistry
    And I just have to say thank you to you your videos added to my tiny pool of knowledge. I am very happy to have come across your videos and learned to expand my learning in the areas.

    • @anamakesthings
      @anamakesthings 6 หลายเดือนก่อน +1

      What a wonderful and wholesome comment 💚💚💚 From one nerd to another, yay for learning!!!!!

  • @glennpearson9348
    @glennpearson9348 ปีที่แล้ว +42

    Wonderful explanation of GDP, in all of its various forms. One issue with GDP, at least when used to gauge the health of an economy, is that it fails to take into account what it costs to produce a finished good. This is why some economists also contrast GDP with a nation's (or a state's) debt (since people, businesses, and governments often borrow money to operate and produce finished goods). Going back to the Germany v. China example, Germany's GDP per capita is over 4 times that of China's, which suggests that at the person living in Germany is much better off than China. Moreover, at the end of 2022 Germany's national debt was around 65% of its GDP, while China's was only around 45%. Compare either of those the U.S.'s, which is around 123%. When viewed through this lens, while the U.S. may seem like the strongest economy in the world, by GDP, it's actually quite fragile given the enormous amount of borrowing we've done to produce our final goods.
    PS - this also explains why it seems like the U.S. is almost always facing a "debt crisis" and our rate of small business and personal bankruptcy is far higher than in most other western countries.

    • @naturegirl1999
      @naturegirl1999 ปีที่แล้ว +1

      Thanks for this, I knew the US wasn’t doing great, had no idea how bad it was/is. I mention the US because that’s where I’m from. Changes need to be made I know

    • @ThuthảoNguyễn-k9n
      @ThuthảoNguyễn-k9n ปีที่แล้ว

      Why do you say in VietNam

    • @glennpearson9348
      @glennpearson9348 ปีที่แล้ว +1

      @@ThuthảoNguyễn-k9n Who said Vietnam?

  • @studypurposeonly69
    @studypurposeonly69 ปีที่แล้ว +9

    This video deserves much more views :)

  • @zeuschronos446
    @zeuschronos446 ปีที่แล้ว +7

    Took economics 46 yrs ago in college, didn't understand it then, still don't despite trying
    just seems divorced from reality. Have you heard of Kate Raworth's "Doughnut Economics"
    look's like not only is it easier to understand, but also more grounded in reality.

  • @Queremos_WWE
    @Queremos_WWE 8 วันที่ผ่านมา

    Awesome and clear! Thank u

  • @lucidity1
    @lucidity1 ปีที่แล้ว +21

    I'd like to add that the inequality also applies to the per capita and therefore may not be a perfect indicator either. if a disproportionate amount of the GDP goes to a small wealthy elite (as was mentioned) then the average citizen of a country will make significantly less then GDP per capita suggests as a result.

  • @xXPACIFISTXx
    @xXPACIFISTXx 9 หลายเดือนก่อน +7

    I am so mad lol i spend 3 hours reading about GDP and this guy basically explained it in 6minutes

    • @4sisters443
      @4sisters443 4 หลายเดือนก่อน +1

      Same

    • @NOICEBE
      @NOICEBE 2 หลายเดือนก่อน

      ahah likewise

  • @phalangmiki
    @phalangmiki 11 หลายเดือนก่อน +4

    00:12 GDP measures the total value of goods and services produced within a country's borders.
    01:00 Differentiating between intermediate goods and final goods
    01:48 GDP counts only final goods and production within a country's borders
    02:31 Gross Domestic Product (GDP) represents the total cost of all goods and services produced in a country.
    03:19 Real GDP is a more accurate measure of economic growth
    04:10 GDP doesn’t measure underground economy, negative externalities, and leisure time.
    04:58 GDP doesn’t account for distribution of goods and services
    05:51 Gross domestic product (GDP) remains the primary way to quickly measure the health of an economy

  • @youtubecensorshipagainstru7799
    @youtubecensorshipagainstru7799 ปีที่แล้ว +3

    Why the national debt is not deducted from the Gross Domestic Product.
    It turns out that the statistics are not objective.
    It seems to show that there is production, but in fact it is in debt to the ears.

  • @Everlastingnocturne
    @Everlastingnocturne 5 หลายเดือนก่อน

    i wish i found this channel earlier in life. he's explaining the same as my professor in social studies grade 7-9 just as good but takes time to explain it. i only have half a year left before "upper secondary scool" i have no idea bout other countries grade system but these videos are amazing.

  • @rl6834
    @rl6834 4 หลายเดือนก่อน

    This is an awesome explanation! Well presented

  • @hebejeebies2452
    @hebejeebies2452 ปีที่แล้ว +3

    Makes sense to me . Thank you.

  • @Musix4me-Clarinet
    @Musix4me-Clarinet ปีที่แล้ว +8

    Brief videos with high information density. Smart! Direct appeal to today's consumer. As an aside, there are 7 dislikes as of the time of my comment. I really can only imagine two different kinds of people who would take the time to click the dislike button: 1. _Leftovers from victims of Dave's debunking videos_ or 2. _Trolls who have nothing better in life._ In either case, *pathetic.*

    • @shedshow1439
      @shedshow1439 ปีที่แล้ว +2

      I think number 1 definitely covers it.

    • @sudipbhusal2979
      @sudipbhusal2979 ปีที่แล้ว

      ​@@Aaron25gleason beheke laude fake vanxas mugi bhalu jasto vayani ramraii padako xa tw tw mug le sakxas vane padhayarw dekhe na tw ma ki chut bsdk fuck u

  • @SkeenCharles
    @SkeenCharles 4 หลายเดือนก่อน

    This was a good and simple explanation.

  • @leehayes4019
    @leehayes4019 ปีที่แล้ว +5

    Quality of life!
    Externalities! Leisure!

  • @terrakorp4291
    @terrakorp4291 10 หลายเดือนก่อน

    Hi Prof Dave, thanks.... I learned a lot

  • @StayLuminosa
    @StayLuminosa 7 หลายเดือนก่อน

    This video saved me! Great explanation! Thank Youu!!

  • @onayeleoluwaseun
    @onayeleoluwaseun 10 หลายเดือนก่อน

    Thank you so much 😭

  • @thephantomeagle2
    @thephantomeagle2 ปีที่แล้ว +5

    Thank you for this. We never get the full story from anyone official.

  • @AkmalJ-uf2if
    @AkmalJ-uf2if 3 หลายเดือนก่อน +1

    From helping me in foundation science to helping me in my economics degree 😅

  • @ActionsSpeakLouderThenWords
    @ActionsSpeakLouderThenWords 2 หลายเดือนก่อน

    Excellent

  • @G-A-Jaxon
    @G-A-Jaxon ปีที่แล้ว +15

    GDP, the BMI of economics?

    • @svenmegens
      @svenmegens 11 หลายเดือนก่อน +4

      The most accurate analogy possible

    • @blazer9547
      @blazer9547 10 หลายเดือนก่อน

      You're right, but slightly better.

    • @CheapCheapCharles
      @CheapCheapCharles 4 หลายเดือนก่อน

      Does he mean Body Mass Index?

    • @SalokhMakhmudov
      @SalokhMakhmudov 2 หลายเดือนก่อน

      Yes, bro, you found it

  • @SwApPyY
    @SwApPyY 12 วันที่ผ่านมา

    Very nice

  • @jamesnorman8848
    @jamesnorman8848 ปีที่แล้ว +53

    me early lol I know no one cares but yay

    • @pranjalverma2536
      @pranjalverma2536 ปีที่แล้ว +13

      We do buddy

    • @jimbo7042
      @jimbo7042 ปีที่แล้ว

      You're gay. Now I know in this day any just not a big deal but it is. Try not to be so gay

    • @tshwanelomatsei4124
      @tshwanelomatsei4124 10 หลายเดือนก่อน +6

      We always care

    • @kishwarshaheen6212
      @kishwarshaheen6212 10 หลายเดือนก่อน +1

      I don't care

    • @StayLuminosa
      @StayLuminosa 7 หลายเดือนก่อน

      We care 😭

  • @darev6780
    @darev6780 ปีที่แล้ว

    Thanks for this

  • @melodyqueen8440
    @melodyqueen8440 10 หลายเดือนก่อน

    The purpose of life is a question that has puzzled humans for centuries 🧐. Some believe it's to achieve happiness 😊, others say it's to fulfill a higher calling 🙏, while some argue that there is no purpose at all 😕. Regardless of what you believe, it's essential to find meaning in your life and strive to make a positive impact on the world 🌍. #purposeoflife #meaningoflife #happiness #highercalling #positiveimpact

  • @waelfadlallah8939
    @waelfadlallah8939 ปีที่แล้ว +5

    Waiting for Don Christie

    • @donchristie420
      @donchristie420 ปีที่แล้ว +2

      Mowing dagnabit ☹️

    • @waelfadlallah8939
      @waelfadlallah8939 ปีที่แล้ว

      @@donchristie420 no clue what that means. Nevertheless, are you amazed by my predictability gift :)

    • @donchristie420
      @donchristie420 ปีที่แล้ว

      @@waelfadlallah8939 mowing the grass and it’s a soft cuss word that Jed clampet (Beverly hillbilly’s)used instead of godamit

    • @waelfadlallah8939
      @waelfadlallah8939 ปีที่แล้ว

      @@donchristie420 😅👍

    • @waelfadlallah8939
      @waelfadlallah8939 ปีที่แล้ว

      @@donchristie420 that was actually awkward calling for your presence but i become used to see your smart comments after every video of prof dave

  • @bobbeckstead8340
    @bobbeckstead8340 9 หลายเดือนก่อน

    If the government spends a lot of money, the GDP is elevated. But, the money the gov spends is other people's (tax-payers) money, borrowed money, and fiat money - i.e, it does not reflect true wealth, but it increases GDP. Gov spending also causes price inflation which renders nominal GDP less valid.

  • @RaindropWorksPDX
    @RaindropWorksPDX ปีที่แล้ว

    I gotta disagree with the ending of your video, it's not that GDP doesn't 'prevent bias', it's that GDP has a known bias that is disregarded, whereas other options may introduce different biases that those who benefit from the bias in GDP don't like.

  • @Nikki94here
    @Nikki94here 10 หลายเดือนก่อน

    I finally get it. Thank you :)

  • @counterpoint9260
    @counterpoint9260 7 หลายเดือนก่อน +1

    how can ALL consumption be estimated? most videos fail to explain this..how cna a govt trck everybody's consumption an dspending?

  • @chonkycat123
    @chonkycat123 ปีที่แล้ว +4

    Here before this has many millions of views :)

    • @REXY720
      @REXY720 9 หลายเดือนก่อน

      L

    • @chonkycat123
      @chonkycat123 9 หลายเดือนก่อน

      @@REXY720did the count stop? no? then i’m not wrong

  • @PETER7700S
    @PETER7700S 10 หลายเดือนก่อน +1

    Without 1.7 TRILLION of new deficit in 2023 (7.5% of GDP) the economy of the USA shrank by 5%. 7.5%- 2.5%.

  • @brasileiroloko5375
    @brasileiroloko5375 ปีที่แล้ว

    professor dave explains psychology when

  • @ovuakporoyeabegha9816
    @ovuakporoyeabegha9816 11 หลายเดือนก่อน

    So companies that produce flour, cement, bricks, electronic parts etc etc don't add the GDP?

  • @Mohammadreza-rp8oh
    @Mohammadreza-rp8oh 2 หลายเดือนก่อน

    I wishes for you from Iran 🎉

  • @blixerblacking4211
    @blixerblacking4211 22 วันที่ผ่านมา

    but butter, sugar and flour could be final goods too from the perspective of their makes or manufacturers then they must count !! ???

  • @noone4735
    @noone4735 ปีที่แล้ว +1

    شكرا

  • @akeindesilva8638
    @akeindesilva8638 10 หลายเดือนก่อน

    all ways the best

  • @wendymiles3454
    @wendymiles3454 ปีที่แล้ว +1

    Divorce leads to housing market issues

  • @greeshmaanantharaman9742
    @greeshmaanantharaman9742 7 หลายเดือนก่อน

    Sometimes GDP is expressed in percentage. How does that work?

  • @Emankhattak-do9wl
    @Emankhattak-do9wl ปีที่แล้ว

    Thankoooo☺️

  • @mikemaurer3320
    @mikemaurer3320 8 หลายเดือนก่อน +1

    So is that with every item and food we buy from
    A different country. It’s Don’t t raise our gdp it raises there’s?

  • @riyasri-s3n
    @riyasri-s3n 11 หลายเดือนก่อน

    Hi professor
    May i know why rewarding a super performance workers reward and air pollution affect the GDP Calculation

  • @bobbeckstead8340
    @bobbeckstead8340 9 หลายเดือนก่อน

    GDP is a measure of goods & services that have been PURCHASED (not those that are available, as in inventory),, If I shine your shoes and you pay me $10, and you trim my hair and I pay you $10, that's $20 GDP even though neither of us has a net change in monetary wealth. Thus, GDP is (1) a deceptive metric, and (2) a measure of commercial ACTIVITY rather than wealth.

  • @optimus-prime703
    @optimus-prime703 ปีที่แล้ว

    When will be the next video exposing discovery institute

  • @sahand944
    @sahand944 ปีที่แล้ว

    Helpful

  • @donnettepalmer6798
    @donnettepalmer6798 ปีที่แล้ว

    In my country, the government says the GDP is the best the country has seen in 20 yrs n yet we’re still struggling 😢inflation is kicking the less fortunate asses

  • @rohanreddymogili3072
    @rohanreddymogili3072 ปีที่แล้ว

    my brain was heating up 😂

  • @kingsg18
    @kingsg18 ปีที่แล้ว

    :50 secs, Question: lets say I'm not a baker and I purchase these same items to bake a cake (not to sale). Is it now considered a final good? and how is that acknowledged in the GDP?

  • @elimlinrr6898
    @elimlinrr6898 4 หลายเดือนก่อน

    In 2022, if US GDP grew only 1.9% why was US GDP per capita growth not 1.9% but 8.7% ? Why is there a mismatch ?

  • @Tm-bj2sq
    @Tm-bj2sq ปีที่แล้ว

    What if american businesses start a business offshore? Is those goods produced given the american gdp or the offshore countries gdp?

  • @bramstokerfan
    @bramstokerfan 5 วันที่ผ่านมา

    Ok now do GNP

  • @vijendrapillay1352
    @vijendrapillay1352 11 หลายเดือนก่อน

    it's mean one giant 👌👌👌

  • @ultradimensions
    @ultradimensions ปีที่แล้ว +1

    So now I get how the US makes money of wars

  • @HakuCell
    @HakuCell ปีที่แล้ว +3

    hey Dave, can you debunk the video "THE interview" by Jeremy Griffith and his World Transformation Movement?

  • @wendymiles3454
    @wendymiles3454 ปีที่แล้ว

    Money is the most fought about topic in marriage

  • @kksharma7638
    @kksharma7638 ปีที่แล้ว

    Can You tell me what You spoke from 4:54 to 5:06....

  • @ngolu9574
    @ngolu9574 3 หลายเดือนก่อน

    I emailed you but you didn't respond

  • @PennyBarajas-l4o
    @PennyBarajas-l4o 4 หลายเดือนก่อน

    Giovanny Summit

  • @RaulZamora-dm1es
    @RaulZamora-dm1es หลายเดือนก่อน

    NAME 🙌 AMÉN 🙏♥️🕊️ V

  • @wendymiles3454
    @wendymiles3454 ปีที่แล้ว

    Its too late we already gave them the pickle

  • @Tabarak133
    @Tabarak133 ปีที่แล้ว

    Mr , do you have email i have homework and i need to contact with you ?

  • @hashemalawadhi9475
    @hashemalawadhi9475 ปีที่แล้ว +1

    My _________ enemy
    GDP

  • @greenmengroup
    @greenmengroup 4 หลายเดือนก่อน

    I usually watch this channel because I like to see flat Earthers get humiliated. It was cool to find this video while looking for homework help haha

  • @-JA-
    @-JA- ปีที่แล้ว +1

    👏👍

  • @gvikram3093
    @gvikram3093 3 หลายเดือนก่อน

    🔥

  • @freebee007
    @freebee007 ปีที่แล้ว

    Religious communities relating some sounds of stars as knocking sound similar to one mentioned in Quran ch 86 Al Tariq (night star), update scientifically.

  • @AdánCrespo-s8j
    @AdánCrespo-s8j 11 วันที่ผ่านมา

    Please subtitles in English

  • @parthapratimchattaraj3470
    @parthapratimchattaraj3470 4 หลายเดือนก่อน

    👍

  • @mohitmehta693
    @mohitmehta693 ปีที่แล้ว

    😊

  • @CherryNeri-v6r
    @CherryNeri-v6r 4 หลายเดือนก่อน

    Innovation progressiois Environmentally friendly transparency Compassionate care for humanity and living things GDP Summits proposal and platforms technologies expanding form for food securities Healthcare agriculture's businesses And education investment And Investor's Addressed global warming And climate change effects on the world places environment economic growth and development agriculture's businesses And investment

  • @PieInTheSky9
    @PieInTheSky9 ปีที่แล้ว +2

    Wow I'm early

  • @QuethLevi
    @QuethLevi ปีที่แล้ว +2

    horrible audio levels

    • @toby9999
      @toby9999 ปีที่แล้ว +4

      Sounds fine to me

  • @rsgh9284
    @rsgh9284 ปีที่แล้ว +3

    First

  • @tireroastersgarage
    @tireroastersgarage ปีที่แล้ว +8

    Your channel went down hill big time eh.

    • @ProfessorDaveExplains
      @ProfessorDaveExplains  ปีที่แล้ว +6

      Um, no.

    • @ProfessorDaveExplains
      @ProfessorDaveExplains  ปีที่แล้ว +10

      @@dylbough My academic tutorials have never, ever gotten more than a few thousand views on the day of release. They used to get only a few hundred. You just have no clue how educational channels work and you're also a whiny little bitch. Work on that.

    • @ProfessorDaveExplains
      @ProfessorDaveExplains  ปีที่แล้ว +3

      @@dylbough It does not "work like every other TH-cam channel". You're just a clueless moron. Do me a favor, head over to Khan Academy. How many subscribers? What's their average view count the day of posting a video? Students watch my tutorials when they need to for class, not arbitrarily the day I post it for entertainment. Now do you understand? Do you see how you're a clueless whiny bitch with no clue what they're talking about, and by continuing to act like a smug douchebag you are actually humiliating yourself? Yeah?

    • @nickm1212
      @nickm1212 ปีที่แล้ว

      ​@@ProfessorDaveExplains ah yes, the ever effective teaching technique of "you little whiny bitch". Don't have kids man, you'll crack if you haven't already.

    • @mimisbrunnr9956
      @mimisbrunnr9956 8 หลายเดือนก่อน

      ​@@ProfessorDaveExplainsJust ignore the guy. He is doing it for attention, a reaction, or just to be a dick. Great job, as always.