Omitting the raw-material value of a product from its value-added for economic activity calculations is partly a hidden taxation for the public

There is a big mess and confusion that for the world GDP accounting to work, the raw-material value of a product is omitted from its value-added in production for economic activity calculations. <br><br>For example, the wheat started at the farm and was sold for $1. This $1 wheat was then used by a flour plant that made flour from it, which is sold to a bread company for $2. Then the bread plant made bread from that flour and sold it for $5. If the value-added in production is to be measured correctly then the price of the flour from the flour plant should be used to calculate its value-added. In this case the $1 is not used because there is no money being made from it. But what really happened is the flour plant created a $1 value from the wheat that was purchased for $1 from the farm for a total of $2 in value. But the value-added in production will only show $2 - $1 = $1. What happened to the other $1 of value? It was the raw-material value that was created at the farm. So the value-added in production isn't really value-added, its the value-added from value-added. The GDP is just the sum total of all value-added in production, which is the sum total of the value-added from value-added. So the value of the raw-materials isn't counted in such accounting but shows up in the price and consumer. For example, if the price of a new car is $20,000 including all the value-added in production, then the value of the raw-materials maybe $5,000. So $5,000 is not counted in the value-added in production, but is counted in the $20,000 price. This means that when it comes to economists calculating the value of goods and services in society they don't count the value of raw-materials such as food. This is not innovation, this is not progress, this is just crony capitalism where the people are paying to the corporations through "invisible" taxes. <br><br>For example, the "value-added" in production for flour might be $1 but the price of flour is $2. For economists to say that the price of flour should be $1 would be considered communism but then all it really is is that the people aren't paying $1 in "invisible" taxes that they don't know about. But maybe this is what people want, to pay "invisible" taxes.