The other three components of GDP represent income accruals to the three main players in an economy: labor, capital owners, and government. This decomposition of GDP immediately illustrates the fallacy of the common assumption: That GDP per capita was 55,037 yuan in 2004 does not at all mean that an average Shanghainese earned 55,037 yuan. The 55,037 yuan was shared among labor, capital owners, and government. Importantly, it matters how the GDP is distributed among them.
