New study examines historical GDI trends and what they mean to the income inequality debate
The Tax Foundation has released an overview of the BEA’s data on Gross Domestic Income (GDI), the lesser-known cousin of Gross Domestic Product (GDP). While GDP measures what gets purchased, GDI measures who gets paid and is useful for determining how Americans earn their incomes and maintain their standards of living.
Using this data series has some distinct advantages. Unlike almost any other income data, it is complete; it adds up to the total value of all economic production. Additionally, the BEA has put together data on American GDI going back to the start of the Great Depression, making it a very long-running data series.