0:01 when trying to get a sense of how rich a
0:02 country is the most common term you'll
0:04 hear is gdp or gdp gdp gdp is gdp gdp or
0:10 gross domestic product uh while many
0:13 internationally consider australia's
0:15 main gross domestic product to be
0:16 vegemite uh the gdp is actually the
0:20 market value of all finished goods and
0:22 services produced in a country in a year
0:25 obviously that is total gibberish but uh
0:28 here's what it means
0:30 [Music]
0:32 let's take australia our gdp is the
0:34 number we get when we add up the price
0:36 of every single product or service
0:38 produced in our country
0:41 when it reaches the point where it's
0:43 sold for the last time in australia
0:46 for example let's say your job is to
0:48 make sugar and a third of the sugar you
0:50 make you take to the local market and
0:53 you sell it in little bags for people to
0:54 use in their household cooking the sale
0:57 of that sugar would count towards
0:59 australia's gdp but another third of the
1:02 sugar you make you actually sell to a
1:04 local sweets company that uses it to
1:07 make lollipops that they will eventually
1:09 go on to sell
1:10 the sale of that sugar would not add to
1:13 the gdp because it's not a finished good
1:17 but eventually the sale of the lollipops
1:19 would you see in this way we don't end
1:21 up with a bunch of double ups
1:24 the only time the sale of unfinished
1:25 goods or intermediate goods count
1:27 towards the gdp is when they're being
1:29 exported uh which is what you do with
1:32 that last third of sugar you sell it to
1:34 a company in japan and
1:36 it doesn't really matter what that
1:38 japanese company does with it because
1:40 that's the last time that sugar will be
1:42 sold in australia oh and it's not just
1:45 the sale of physical objects by the way
1:46 like the money that doctors make or dog
1:49 walkers make or teachers or babysitters
1:51 all of that counts towards the gdp too
1:54 because they're selling a service to put
1:56 it simply gdp gives you a sense of how
1:59 big a country's economy is
2:01 it's not perfect though because there
2:03 are heaps of things that can't be
2:05 measured that still affect the wealth of
2:07 a country like having non-polluted air
2:10 or clean drinking water or a bunch of
2:12 tourist attractions or even just the
2:15 happiness of the citizens all these
2:17 things are super valuable but hard to
2:19 put a dollar value on economics bad at
2:23 measuring things other than money
2:25 shocking where gdp does come in handy
2:28 though is comparing countries and it's a
2:30 pretty decent way of seeing who the most
2:33 powerful players are in the global arena
2:35 for example as of 2022 the us's gdp is
2:39 20.94 trillion us dollars compared to
2:43 australia's
2:45 1.33 trillion
2:47 give or take as the exchange rate
2:49 changes with every second but um clearly
2:51 they dwarf us
2:53 what if you wanted to compare how well
2:55 off each of our citizens are well then
2:58 you would need to divide the gdp by the
3:00 population giving you the gdp per capita
3:04 in the u.s the gdp per capita is about
3:06 63.5
3:08 000 us dollars while in australia it's
3:11 about 51.8 000 so as you can see much
3:15 much closer oh while i have you here the
3:18 growth rate of a country's gdp is
3:20 another big thing that people talk about
3:22 because it's a common way of determining
3:24 the relative health of a country's
3:26 economy uh particularly when that growth
3:29 is actually
3:30 negative anyway that's gross domestic
3:34 product
3:36 gross
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