But most chief executives know less about how they can affect the value of their stock options than how they can increase the size of their bonus, which may be linked to the company's profitability or to economic value added.
In simple terms, economic value-added is almost entirely defined by the sum of wages and profits.
So if you want to create economic value-added, you have to do things that create jobs and pay wages, or create profits, or both.
And if you want to create growth in economic value-added, you have to do things that increase increase those aggregate wages, or increase those aggregate profits, or both.
But purchasing equipment does not automatically add anything to economic value-added, once you have given credit to the original manufacturer for his labour and profit in the item.
Economic growth means growth in GDP, or economic value-added.
Is there anything that this administration is doing to consider, calculate, pose in any way, shape or form, weigh or measure potential deficit implications or economic implications of a value-added tax?
It is the value added through economic activity.
FORBES: GDP For a Country is Not the Same Thing as Turnover for a Business
It has adjusted UK gross value added, a measure of economic output, to exclude energy extraction and use, and also financial and insurance activities.
And Merkel is still plowing ahead with her economic restructuring plan, even pushing through a dreaded value-added tax increase.
But the key to economic growth is not just the low cost of production, it's the value added--the innovation, design or better architecture, or the sheer intangible of exciting fashion.
In the end, Bruce makes a case for phasing in a well-designed Value-Added Tax, both to help reduce the deficit and in the name of economic efficiency.
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