quote:The economic unit model on that picture. Is that a house, our economy or any goods in general? How does the economist come into the picture with this. It looks like depreciation is sneaking out the backdoor.
Since there is net worth I googled a search for "gross worth" and a page says they are both the same.
Looks like I missed this eons ago.
The way I am thinking of economic unit, which is a perspective I formulated, could be an individual, a family a business, a corporation or a nation. Of course big economic units will have smaller economic units within them. I am trying to get individuals and families to think of themselves as economic units. The corporations mostly know how to take care of themselves and use their employees.
When you buy a new car you probably know that the car will be worth less than the purchase price two years later. The economists added the purchase price to GDP when you bought the car. But he isn't going to deduct that depreciation you lose from anywhaer.
I am estimating Americans have loste 10 TRILLION dollars in depreciation on cars since 1945. The economics profession isn't tellin us about this like the don't talk about planned obsolescence of automobiles.
I don't remember running across the term gross worth before. What they seem to be talking about is the cost of liquidating assetes. If you sell a house for $300,000 you may only end up with $270,000 to $285,000.