What Is the Best Way to Understand National Income?

Werner: National income is what you have to go around after you've made an allowance for the depreciation, i should say, of capital goods. And that's the reason why you have to bewary when you del with a measure like gross domestic product because the main stream also has a measure called net domestic product. Werder: If you don't make a physical allowance to sure up that depreciated capital, then your capital goods will continue to depreciate and eventually you'll starve. Soi maybe o want to pick up tom in and popularize what i've just said.