Financial Terms/Concepts

Consumption Tax:   A National Sales Tax, assessed on top of any State or City Sales Taxes.  Such a tax tends to be regressive, since it is generally assessed on necessities, and mostly effect the poor members of our society.  Don’t be surprised if luxury items are exempt!

GDP—Gross Domestic Product:  is the total of all goods and services produced within a country.  The GDP of states, regions or other political subdivisions is occasionally reported; however, like any statistic, with smaller sample sizes, the margin of error increases.  GDP bis a measure of economic health.

ROE—Return on Equity:  The appreciation of the equity in an investment, as compared to the initial equity investment made. Leverage (debt), if used, would increase the ROE, on the upside, similarly to how it would increase the decline in value, on the downside.

 

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