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"Principles of baseline GDP" and the "principle of incremental GDP"
Benchmark GDP principle:The total production in human society, it also can be said that the total consumption in humans, the total production of all, there must be some basis for the production part, this part of the production is one of the lowest survival bottom line, which can sum up the baseline GDP. in accordance with the total number of simple low-cost food, clothing, housing, education, health care needs of the total production volume of the total production volume is calculated is the amount of baseline GDP. This part of the baseline GDP is that everyone must be a minimum level of benefits in the form can be used directly to each person, so it can be called the welfare of GDP. Of course, you can not get people to get welfare in the form of these living conditions.Various periods of baseline GDP in humans should be a constant, and will not change. If there is a change, then, becomes just the human value of currency in determining changes in the standard, modern and ancient people ate an apple an apple to eat exactly the same role, that is exactly the same value, the ancient people to eat directly from an apple pluck and eat them on it, do not go to exchange money, but most of the modern apple to go through a lot of people work many times, picking, packing, transportation, placed in charge of the stores have a booth, but the actual added a lot of unnecessary waste chain, from ancient times to the present price of an apple is showing increasing trend does not prove that the increasing value of an apple, and can prove it is now increasingly the economic bubble big. From zero price to the price higher and higher prices proved to be infinitely more times to zoom, then the bubble must be a more infinite. Baseline GDP statistics is like an apple on the ancient and the modern role of the same size as those generated output.Baseline GDP, also known as welfare GDP, is human food, clothing, housing, education, health care standards must be a minimum consumption of total production. If this part of the baseline GDP being achieved with the needs of people, also known as welfare GDP, can also be called directed quantitative GDP.
Principle of incremental GDP:In addition to baseline GDP, there are scientific, technical, social progress in the production, this part of the GDP is called the increment of GDP.Incremental calculation of GDP, the sum of per capita consumption of 1 / 4 calculation. The results of running the calculation, in accordance with the principles of the implementation of the system of thirds. Example, 10,000 people, the amount invested in the automotive industry is the amount of about 800. In 1600 after 6 years the amount of vehicle consumption around and began to recover the amount of the previous run.GDP incremental delivery of new technologies to new science, based on a new science in the germination of new technology, has begun running standards in accordance with the corresponding amount of money to complete the delivery in accordance with the principle of thirds system output to reach the scale of production. Similarly, no new technology, new science, not increase the money supply, which is not to increase GDP, and in accordance with the delivery system of three equal portions and recovery operations.Scientific, technical, and social progress of the additional increment of GDP produced by the currency, called the incremental GDP. If there is no new science, technology, social progress, the content can not be additional money to increase the GDP, and the timely issuance system in accordance with three equal principle of operation of launch and recovery. Two-thirds of the additional requirements, we began to recover the additional amount of graded until fully recovered and destroyed. At this point, completion of the new technology replaces the old technology, the process of exclusion, usually a period of about three years. Or, when a new science, technology, social progress, not additional money can be, this way of social progress faster.