CHAPTER VII 
WAGES, PROFITS AND INTEREST 
The economics of distribution explains the 
sharing out of the wealth produced by a 
community. We may think of the various 
individuals in a community as working together 
with suitable appliances to make the incomes 
upon which they live. The generalisations 
relating to their activities, when they are thus 
engaged, constitute the economics of produc 
tion. What is produced is called the national 
dividend or the national income. Generalisa 
tions relating to the processes whereby the 
national income is divided up constitute the 
economics of distribution. Only it is important 
to observe that the processes of production 
and distribution go on continuously. We all 
know that it is not a fact that production for 
a common stock continues for a time and then 
ceases while the division of the stock is being 
arranged. The process of its division is 
continuous with the process of its production. 
What exactly is implied by this statement we 
shall realise more fully as we advance. 
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