what is the difference between GDP(gross domestic product) and GNI(gross national income)?

Answer 1

A region's gross domestic product, or GDP, is one of several measures of the size of its economy. The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. Until the 1980s the term GNP or gross national product was used. The two terms GDP and GNP are almost identical. The most common approach to measuring and understanding GDP is the expenditure method:

GDP = consumption + investment + government spending + (exports − imports)
"Gross" means depreciation of capital stock included. Without depreciation, with net investment instead of gross investment, it is the Net domestic product. Consumption and investment in this equation are the expenditure on final goods and services. The exports minus imports part of the equation (often called net exports) then adjusts this by subtracting the part of this expenditure not produced domestically (the imports), and adding back in domestic production not consumed at home (the exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector spending. Two advantages of dividing total consumption this way in theoretical macroeconomics are:

Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.
If separated from endogenous private consumption, government consumption can be treated as exogenous, so that different government spending levels can be considered within a meaningful macroeconomic framework.
Therefore GDP can be expressed as:

GDP = private consumption + government + investment + net exports
(or simply GDP = C + G + I + NX)

Previously known as Gross National Product (GNP), Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together with its income received from other countries (notably interest and dividends), less similar payments made to other countries. For example, if a British-owned company operating in another country sends some of their incomes (profits) back to UK, UK’s GNI is enhanced. Similarly, a British production unit of a US company sending profit to the US will affect the British GNI but will not reduce it since it is not included in the first place.

Answer 2

Sounds like a great theory, but it has never worked in the past. Why do so many people fail to look at history when looking for a solution? The national debt has not decreased since 1940. It doesn't matter how the money is spent, the government is effectively shackling future generations. How large does the debt have to get before it is too large to overcome? I say it has already gotten that large. Nearly 25% of current tax revenue is used just for interest payments. Advocating even greater interest payments is extremely irresponsible, should be criminal. Mine is not a recent worry, have been very concerned about the path our government is leading us for several decades. It is just not sustainable to keep on spending more without the revenue, and yet it keeps worse every year instead of reigning it in. The Federal Funds rate will be kept at 0% for the next two years. What effect will this have on prices of goods and how will that help us get out of an economic slump, even if the stimulus package creates a few road construction jobs? Our purchasing power is decreasing at an alarming rate.

Answer 3

GDP what a country exports. GNI: on average what every citizen in that country makes