On an Income Basis the Economy is Humming, GDP says No, Which is Believable? – Mish Talk

GDP vs GDI

• Gross Domestic Product (GDP) and Gross Domestic Income (GDI) are different measures of a nation’s economic activity. 
• GDI counts what all participants in the economy make (wages, profits, and taxes). 
• GDP counts the value of what the economy produces (goods, services, and technology).
• Real Final Sales (RFS) is a subsect of GDP that ignores changes in inventory which net to zero over time. Economists generally consider RFS to be the true bottom line measure of the economy.