Month: February 2020

Understanding GDP and its Importance to a CountryUnderstanding GDP and its Importance to a Country

In economics, you will constantly hear or read about GDP or the Gross Domestic Product. This is the total market value or monetary value of all finished goods as well as services that is produced within the country’s territory in a given period of time. Here included all businesses regardless of its size and industry such as property management companies Atlanta. This is a broader scope of all the domestic production in a region and it acts as a thorough scorecard of how the economics of a country performs.

A Deeper Look at GDP

Even though GDP is calculated on a yearly basis, it may be calculated as well every quarter. Just as example in the US, the government is releasing an annual estimate of its GDP both every quarter and year. Majority of individual data sets will be given also in real terms. Meaning to say, the data will be adjusted as per price changes and therefore, the net of inflation.

GDP Basics

As mentioned earlier, GDP is the total market and monetary value of all finished services and goods produced for a given time in a country or region. This includes literally everything under its sovereign like:

  • Public and Private Consumption
  • Investments
  • Government Outlays
  • Additions to Private Inventories
  • Paid-in Construction Costs
  • Foreign Balance of Trades

Types of Measurements for GDP

Nominal GDP is basically how raw data is measured. Real GDP takes into consideration how inflation impacts a country and enables comparison of the economic output from the past years. Then GDP per capita is used in measuring GDP per person in national population which is quite useful in comparing GDP data among other countries.

Balance of trade is among the vital components of GDP formula for a country. GDP increased whenever the total value of services and goods that domestic producers make a successful sale to foreigners and it exceeded total value of foreign services and goods that the domestic consumers buy. This is otherwise called as trade surplus. If ever domestic consumers spent more on foreign products than what their domestic producers offer, this is a trade deficit and thus, it decreases the GDP.

Calculating GDP Based on Spending

Expenditure approach is otherwise called as spending approach. It is calculating spending by different groups operating within the economy. This approach could be calculated by applying the formula below:

  • GDP = C + G + I + NX, or Consumption + Government Spending + Investment + Net Exports

The Development of Cannabis and Its Impact on New York EconomyThe Development of Cannabis and Its Impact on New York Economy

The chances for the growth of economics in New York City is one of the most debatable arguments in legalizing marijuana. Based on studies, around 63.4 percent of adults say that legalization of marijuana would be justified through the creation of the industry and the related jobs. Furthermore, the act for legalizing marijuana offers a natural study on the economic progress of the industry. The new industry for marijuana is such a rare case for now thus, creation of supply chain must be implemented as soon as possible.

The Supply Chain of Medical Marijuana in New York

The medical marijuana has been legalized in New York in July 2014.

Due to the legalization of medical marijuana in New York and receiving five licenses after a year, the demand for it is really high. Likewise, the integration of the marijuana supply chain is very much required. Actually, there are 32 dispensaries that are allowed to operate in New York. The New York State Department of Health Laboratory for medical marijuana works collaboratively with New York City. They aim to identify authorized and certified laboratories to perform potency testing and contaminants evaluation.

The Impact of Marijuana in the Economy of New York

The economic impact of the adult-use of marijuana needs the target market size. Below are its possible effect:

1. Employment

Based on the employment report of New York State, there are actually 12.4 employees in every $1 million cannabis sales. Therefore, if there is $1.7 billion cannabis market in New York, approximate employment of 21,080 employees would be possible. They can be deployed in cultivation areas, manufacturing plants, laboratories, and dispensaries.

2. Growth on investment

Generally, the utilization of cannabis demands for monetary investments to support big cultivation companies within the state. One company, the Etain LLC, is having a plan to put up manufacturing facility of medical marijuana around Warren County, New York. This would cost for about $9 million investment that would be an adjunct to the existing $4 million growing areas. So, if you are thinking where to invest this decade, this one seems to be a good option. You may also visit Stocktrades for more information.

3. Effect on the economic output

The industry of cannabis will maintain its progress and will also go through the economic state. Marijuana industry will continue to procure supplies from suppliers located in New York. Those employers within the industry will put their earnings on their locality and their own economy.