The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Income

Collection:: Economics Books

Sec. 6] INCOME ACCOUNTS 131 the net incomes from each individual article of property which he holds within the time interval considered. §6 To illustrate this, let us consider the case of a lawyer living in a rented house, but owning the furniture. We shall assume, for simplicity, that his property is grouped under the following nine heads: (1) stocks and bonds, (2) lease of house (including not only the privilege of occu- pancy but also the obligation to pay rent), (3) furniture of house, (4) other household supplies, especially food, (5) money and bank account, (6) claim on servants (includ- ing not only the claim on their work but also the obligation to pay wages), (7) like claims on, coupled with obligations from, office clerks, (8) his own person, (9) “ete.” We shall take, as the time interval, a period of a month. During the month, the stocks and bonds bring in checks aggregating $2,000 and the lawyer buys new securities to the extent of $500. His total net income, therefore, dur- ing this particular month from this particular group of property rights is $1500. Under his lease he enjoys a month’s use of a house, this use being regarded by him as worth, let us say, exactly what it costs, or $100 a month. Since the lease yields him $100 worth of shelter and costs him $100 in money, it leaves no net income. His furni- ture yields him comfort worth $50, from which cost of repairs, ete., amounting to $30, has to be deducted, leav- ing a balance of $20. His stock of food and similar sup- plies yields him the board of himself and family for the month, worth $150; but the cost of replenishing this stock and the services of cook and waitress in preparing and serving it absorb, let us say, all of this sum, leaving for the month no net income from the pantry’s stock. The next source of income (or outgo) is “cash.” By this is meant the stock of property which includes money on hand and money on deposit in bank. To find how

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