The nature of capital and income

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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 III. Capital and income

Collection:: Economics Books

CHAPTER XI FOUR INCOME-CAPITAL RATIOS §1 Wx have now learned what capital and income are and how each is measured. We have seen that capital is not to be confined to any particular part or kind of wealth, but that it applies to any or all wealth existing at an instant of time, or to property-rights in that wealth, or to the values of that wealth or of those property-rights. We have seen that in- come is not restricted to money income, nor does it, consist of a flow of commodities, nor isit a composite of commodities and services, nor is it necessarily regular in its receipt, nor must it necessarily be such as to leave capital unimpaired; but that it consists simply of the services of wealth, and that, analogously to capital, income may be measured either by the mere quantity of the various services rendered, or by their value. We have seen that in the summation . both of capital-value and of income-value there are two methods available for canceling positive and negative items called the “method of balances” and the “method of couples.” By the method of balances the negative items in any individual account are deducted from the positive items in the same account, and the difference, or balance, shows the net capital (or income, as the case may be) with which that account deals, whether this be the net capital (or income) of a particular owner, or of a particular article or group of articles of capital. The method of couples, on the other hand, cancels items in pairs and is founded on the fact that, as to capital, every liability rela- 183

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