As usual cvj is a trying hard economics guru using lechon manok to stress his point that GDP is equal to National Income. hohoho – Ca T

Ca T, what i was trying to tell Anthony is that GDP is expressed in terms of Income. That’s why it is part of National Income Accounting. I used the simplified lechon-manok example to show the relationship between GDP and Family (aka Household) Income.

As to the specific relationship between Gross Domestic Product (GDP) and Gross National Income (GNI), you can refer to the NSCB Website:

http://www.nscb.gov.ph/secstat/d_accounts.asp

Gross National income (GNI) is computed as follows:

GDP
add (less): Net Factor Income From Abroad (NFIA)
add (less): Memo Items, i.e gain (loss) from changes in the terms of trade

So in the example for 2007 (in Constant Prices), we can compute as follows:

GDP: 1,370,018
NFIA: 138,600
Memo: -39,045

GNI: 1,469,573

You (and Anthony) can verify the above calculations for yourself.

Cat, not to you but to that smart guy from singapore and silent is referring to the thread below.

Now I remember, I did not join the discussion since my wireless was giving me some problem that time and I was confident that Scalia can very well handle the topic.

As usual cvj is a trying hard economics guru using lechon manok to stress his point that GDP is equal to National Income. hohoho

please join us on friday.

http://www.quezon.ph/?p=1682

During the 19th century there was no such thing as protecton of international property rights. It was only after the Second World War that Japan moved to buy patents and convert them into cheaper products and they improved on them Morita is a perfect example. Think Sony.

Toyota moved from textiles and copying U.S. textile machines to cars. Their model Chevy II for the Crown. Komatsu from International Harvester. It was called reverse engineering.

While the Americans were trying to pacify the Philippines century, Japan was moving to do battle with the Russians in steel hulled ships. The armor and guns on the Japanese ships were of better quality and the tactics were learned by the Japanese from the British battle vs the French from Trafalgar.

All these improvements came from the order from the Emperor to study the West and their technology and catch up.

You do not have to reinvent the wheel. You improve on it.

First on ignorance and stupidity.

Economics is really very simple – it is the study of the resources of man and its allocation to human needs.

Why has it become so confusing? You have literacy – functional literacy and professional functional literacy. I still cannot figure how pharmacists understand doctors prescriptions?

The U.S. problem is one of loss of confidence in financial institutions. Unknow to many is the fact that Europe, Japan and China in that order are the biggest investors in U.S. financial markets including lending to the U.S. state. That is why you have all sorts of problems in Europe traceable to U.S. subprime.

The attmept at a stimulus package is simply to intill confidence to the general public that the state will be there. Soemone once wriote that the economy is like large clitoris that has to be stimulated to become engorged once again. But that will pass. What the U.S. need is time to regain confidence but the bad news keeps growing. The next ciorsis is this. How could insurance companies insure bonds vs. default when they have limited capital. In a deflationary period more bonds would go into default and thus all these policies that hedge funds and banks use would be worthless.

It is a house of cards entirely based on confidence. A giant Ponzi scheme premised on rising asset valuations.

Banks are tightening up lending standards and are drawing back on giving credit across the board. They do this by increasing rates long term.

Plus the excesses of the past -(massive liquidity) is sitll out there. You have defaltion in asset markets, but you have inflation in commodity markets because of weather and and increasing demand from emerging markets plus the period of tough oil with the threat of terrorism thrown in.

A witches brew for a perfect storm breaking out. Where and when will a spark light up this perfect fire storm? No one knows. This problem in the philippines is a good sign that the wekness of the almost totally debased state is being exposed. Every passing day more details are coming out that will tend to show that Big Mike and GMA are simply crooks and are a reflection of the miserable state of affairs in the country.

We all share the blame. How can one teach kids about ethics and morality when the perception is out there that our leaders are nothing but criminals.

We are a fortunate bunch to have been introduced to progressive theories more so than our neighbors but are unable to do anything about it.

The simple reason is because we failed to empower the vast majority. Our lines of common good stop at the boundaries of family and not community. That common sense of community is sorely lacking.

My guess is we have to come and bring or wait for the country to come to a serious crisis. The three agents in any economy are the business world, the government and the working class. That working class is the necessary buffer between the other two agents. it is normamal and natural for the business class to dominate the state since they have the means to support the state. But their price in return will always be against the common good. So how does break the cycle.

The material means will always favor big business.

There is a huge imbalance in power and it will take enlightened leadership to unite the many.

The one and only amazing thing about Obama is the symbolism that one sees in a black man surrounded by white folk who are cheering him on. Suddenly you see a group of white folk who have become color blind. Suddenly you realize that the idea of all men are created equal is true. But the problem remains on how to achieve equal opportunities for all. That means that it falls to governance supported by not a majority but a committed group of people who believe in the common good. The majority are mostly sheep anyway. Ignorance is not a bad thing. Stupidity is.

Just watch the Big Mike and GMA try to wriggle out of this mess and you see how stupid they must be for thinking that most people are dumb. They are destroying themselves because of hubris. They have become their own worst enemies. For me that proves there is a God.

You’re the economics guro here, yet you can’t see what Scalia is trying to point out. That Family Income is NOT equal to GDP….it IS a component of GDP. In your world, GDP=Family Income. Reason being that you really have rose colored glasses with respect to the administration (and by the way, I am no fan of it, but I am FAIR about it).

Is this addressed to me?

I think I must have missed the discussions re this topic.