An Amazing Story From a Graph
Sometimes one graph can tell a whole story:
A 4-minute animation can also convey a much bigger story.
Looking at the same time period as our graph, Hans Rosling connects national income and health. National income closely relates to GDP since people receive income for all that they produce. As a result, we can use national income stats to calculate GDP.
However, it becomes ever more complicated when you have to decide what to include. During July 2013, US government statisticians began to include the dollar value of “intellectual property products” in the fixed investment category. Crucially, that meant research and development (R&D) would be recognized. In addition, music, entertainment and TV show production costs are now added to the GDP. As a result, statisticians went back as far as 1929 and revised all figures.
Rather amazing. Just hit a few computer keys and your GDP grows.
Still though, whatever we include in GDP, it conveys a message. Your comments on the message from the above graph and animation? Please do let us know in a comment.