Difference between productivity and income

Submitted by Boris Zeldovich (United States), Apr 20, 2004 at 13:38

Dear Dr. Pipes !
1) I greatly appreciate your work, and I attended, with great satisfaction, one of your lectures.
2) You are writing:
P.A. residents number 3.5 million and their economy produces $2.5 billion a year, meaning the average per capita income is $700 a year.
I suspect there is a confusion in terminology. Income is less than the value of produced goods: you always have some "overhead", which may be from 50% to 95%.
So the real income (it does not matter if per capita or gross) is less than your number $700.
Sincerely, B.Z.

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