If the High-Tech GDP of a city is 285% yet it ranks one of the poorest in country, what's the possible reason?

Question

According for Forbes, a local metro area produces 285% GDP, it's job growth is fairly slow 19% and it's been ranking one of the poorest cities in the nation. Is it that all the production/money is being sent outside the city? Or perhaps only a handfull of wealthy people are earning big money? Is the high ratio of GDP a reflection of the poor economy in the city? .... We do have many manufacturing plants. Don't know if that impacts the high GDP and poor economy.

Answer 1

The KEY to this question lies with your understanding of what GDP means. Remember, GDP = the value of domestic goods and services produced.

So a local area's GDP would be the value of goods and services made/sold by local businesses located there. Well think about it? Can a business sell tons of stuff and make huge profits, while the employees themselves make far less? Absolutely!

And is it possible that businesses in the area are doing well, yet the people who live there aren't so well off? Yes!

So there doesn't have to be a direct relationship between how local businesses are doing in terms of profits and how wealthy the local citizens are.