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Gross Domestic Product (GDP)

GDP refers to the total value of a nation's production of goods and services.

The formula for GDP is: consumer spending (C) + business investment (I) + government spending (G) + net exports (X-M). Nominal GDP refers to the unadjusted total, whereas "Real GDP" adjusts that total to account for inflation.

Simon Kuznets invented the notion in 1937. It has since become the guiding metric to measure not only the volume and value of national production, but the welfare of the nation. Of all the criticisms of such "fetishization of GDP" (Joseph Stiglitz), the simplest may be that given by Kuznets himself, who wrote: "The welfare of a nation can scarcely be inferred from a measurement of national income."

Thirty years later, Kuznets adds: “Distinctions must be kept in mind between quantity and quality of growth, between its costs and return, and between the short and the long term. Goals for more growth should specify more growth of what and for what.”
A deficit-funded, $6k/year UBI is modeled to decrease GDP by 6.1% by 2027, and 9.3% by 2032 Increasing the tax rate on land from 0.55% to 5.55%, balanced by reductions in taxes on capital and labor by 28% and 10%, respectively, would increase the welfare of a representative household by 3.4%, and increase output by 15%. In an econometric model, land value taxation yields double the amount of welfare and output gains as a wealth tax that raises the same revenue. The marginal benefits in output of a 1% increase in land tax rates remain large until a tax rate around 10%, after which the output gains taper off. Replacing all current taxation with a 20% land asset value tax and a 12.2% consumption tax would maintain current levels of government revenue, while raising welfare by 5.2% and output by 26%. Countries that switch from non-democracy to democracy achieve about a 20% increase in GDP per capita over the following 30 years.
Modeling the Macroeconomic Effects of a Universal Basic Income Options for Universal Basic Income: Dynamic Modeling The Macroeconomic Effects of Universal Basic Income Programs General equilibrium effects of cash transfers: experimental evidence from Kenya Democracy Does Cause Growth Post-Corona Balanced-Budget Super-Stimulus: The Case for Shifting Taxes onto Land
Gennaro Zezza Marshall Steinbaum Michalis Nikiforos André Victor Doherty Luduvice Michael Walker Paul Niehaus Edward Miguel Johannes Haushofer
Basic Income Codetermination Land Value Tax
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