The gross domestic product comprises 20 private industry sectors and two government groups. All together 22 distinct sectors contribute to the gross domestic product (GDP).
Gross Domestic Product
Gross Domestic Product refers to the total national production measured by combining four primary areas of spending. The four areas of spending include consumer, private domestic (industry), government and the trade balance. For the United States the Gross Domestic Product is approximately $21 Trillion or $21,000,000,000,000 per year in 2018.
Tangible and intangible are terms with several different meanings. A lot of well educated folks have a difficult time providing an all inclusive definition. Someone once described tangible as ‘something that can be burned’. Well, land is tangible and yet, you can’t burn it. Actually, in Boy Scouts, we teach the boys to use dirt to put out fires! But the best overall definition for these terms that I heard was a synonymous statement made by a Supreme Court Justice when trying to define pornography in relation to art. He said something along the line of ‘I don’t have a definition, but I just know it when I see it’. Basically the gray area for the definition is vast. This is true for these two terms because there are various levels of definitions related to their respective use.
There is the classic college textbook definition. It is straight forward, but it doesn’t really begin to get involved in the gray area definitions. Then there is the more extended definition as used in accounting and customarily in the traditional business setting. Really getting into higher thinking and use of the terms comes into play when discussing value. Finally, there is the relationship to each other with regards to economics and the evolving concept of wealth. They are similar to the theory of the Yin and the Yang of life itself.
Gross Domestic Product is defined as the total production for the country. It is measured by including all the dollars spent to purchase products/services from all the various sellers of goods. The largest purchaser of products/services is consumers. Coming in behind consumers are businesses, remember they are buying goods too. This includes everything from office supplies to the raw materials to make the products the consumers ultimately purchase.