Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
[Footnote 144-4: Thus, for instance, the support given by
the head of a family to the members thereof; also gifts,
alms, thefts. Even _A. L. Schlözer_, St. A., II, 487, will
allow that no one "eats the bread of another," but the
person who has received it from the latter by way of favor
and for nothing. In the case of a rented house, there is
only an exchange of objects of income. The person to whom it
is rented gives up a portion of his, and the renting party
the use of his house. Similarly, in the case of personal
services. Writers who maintain that only certain kinds of
useful labor are productive, must of course extend the
limits of diverted income much farther. See _Lotz_,
Handbuch, III, § 133; _Rau_, Lehrbuch, I, §§ 248, 251.
_Cantillon_ thinks that if no landowner spent more than his
income, it would be scarcely possible for any one else to
grow rich. (Nature du Commerce, 75.) According to _Stein_,
Lehrbuch, 347, every one gets his income from the income of
other people!]
SECTION CXLV.
INCOME.--GROSS, FREE AND NET.
In all _income_, we may distinguish a _gross_ amount, a _net_ amount and
a _free_ amount.[145-1] The gross income of a year, for instance,
consists of all the goods which have been newly produced within that
time. The net[145-2] income is that portion of the former which remains
after deducting the cost of production (§ 106), and which may therefore
be consumed without diminishing the original resources. Only the new
values incorporated in the new commodities make up the net income.
Evidently, a great portion of what is considered in one business the
cost of production is net income in a great many others; as for
instance, what the person engaged in one enterprise in production has
paid out in wages and interest on capital. By means of this outlay, a
portion of his circulating capital is drawn by others as income, and, on
the other hand, a portion of their original income is turned into a
portion of his circulating capital.[145-3] _Free_ income, I call that
portion of net income which remains available to the producer after his
indispensable wants have been satisfied.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account