Skc. 7] PSYCHIC INCOME 175 
of the recipient, have all equal and opposite counterparts 
in the accounts as given in Chapter IX, §10. These 
same items were there entered as credits and constituted 
the “uncanceled fringe’ of final objective income. They 
were designated as [B], [C], [D], [0]. Now, however, 
after the introduction of the new items, they cancel with 
the debits of like letters, b, c,d, 0; but another uncanceled 
fringe appears, namely, [P], [Q], [R), [S], which items are 
wholly subjective. These we have, for convenience, entered 
at the same figures as their objective prototypes. Their 
sum is therefore also $2800. But there also appears a sub- 
jective labor cost, [], of $500 to express the personal labor 
and pain of the lawyer in his work. The result is that 
his net subjective income is not equal to the objective in- 
come of $2800, but is only $2300. 
When we have reached this final stage in our inquiries, 
therefore, we find the only ultimate item of cost to be labor 
cost, or, if the term “labor” be mot itself sufficiently 
broad, labor, anxiety, trouble, annoyance, and all the other 
subjective experiences of an undesirable nature which are 
necessary in order that the experiences of an agreeable na- 
ture may be secured. In a sense, therefore, the socialists 
are quite right when they say that labor is the only true cost 
of production, although some of the conclusions which they 
deduce from this proposition are not justifiable. 
§7 
The third discrepancy between subjective and objective 
income is due to the fact that certain agreeable and dis- 
agreeable experiences are due directly to the character of 
1 Tt may be well here to emphasize the distinction between work 
and labor which has been so well drawn by Professor J. B. Clark. 
The work performed consists of the services rendered, and is posi- 
tive; the labor consists of the efforts of performing those services 
and is negative. The work is objective; the labor is subjective. 
Properly speaking, an employer does not pay a man for his labor, 
but for his work.