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

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Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Income

Collection:: Economics Books

152 NATURE OF CAPITAL AND INCOME [Crar. IX outgoes are incomes for other people. The wages are the earnings of labor; the payment for raw material is re- ceived by some other manufacturer; the rent by the land- lord; the interest charges by the creditor. § 6 Not only do exchange transactions completely cancel themselves out in reckoning total income, but the great majority of the natural services of capital do so also. Even these natural uses of capital consist, for the most part, of “interactions,” — they are transformations or transportations of wealth. These intermediate stages are merely preparatory to the final use or so-called “con- sumption’ of wealth, and, after the interactions have been canceled out, do not enter as items either on the income or outgo side of the social balance sheet. In order to show the effect of canceling out the equal and opposite items entering into every interaction throughout the productive processes, let us observe the various stages of production which begin with the forest above referred to. The product of the forest, its gross in- come, is the series of events called the turning out of logs. This log-production is a mere preparatory service, a credit item to the forest and a debit item to the stock of logs of the saw mill, to which they next pass. As the sawmill turns its logs into lumber, the lumber yard is debited with the production of lumber, and the sawmill is credited with its share in this transformation. Intermediate categories may, of course, be created, and we may follow, in like manner, the further transformation, transportation, and exchange to the end of the stages of production, or rather, to the ends; for these stages split up and form several streams flowing in different directions. To indicate merely one of these streams, let us suppose that the lumber which goes out from the yard is used in repairing a certain warehouse. The warehouse is used for storing

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