The Distribution of Income (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1899 edition. Excerpt: ... He selects and combines the various factors to his best ability, his great interest being in reducing the cost. He takes the goods as they come from the hands of his factors and sells them, distributing the price in payments to the factors and to himself. The reason why he pays is, of course, that certain services are rendered to himself and by himself. But evidently we cannot stop at this statement. Everything is thrown forward on the price of the goods produced: it is the fount of payment: and this price is paid by the consumers of the goods. The employers are seen to be intermediaries acting unconsciously for the consumers. We are reminded of the microcosm of industry presented in the former book, where each organisation of labour and capital, acting through its employer, throws its product--its service embodied in goods--into the pool, and takes away in exchange a claim on the pool in the shape of money. Thus there is always a real income--a pool filled with goods, --and a money income--the claims on these goods. But the real payment of the factors for their services is not made till the claims are cashed: when they are cashed, it is seen that the services rendered to the pool have been paid out of the pool. Each producer of goods is paid by other goods: it is a great co-operation of mutual service. Thus we find that the services rendered to single employers are synonymous with services done to the whole body of the buyers--that is, the community. If we found out nothing else about distribution than this, it is always something to know that the factors are not paid out of employers' pockets, nor out of any pre-existing fund or purse, but out of goods sold by the employer on account of himself and his factors; that the community is the...