Forstwirtschafts-Politik

The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 1690009462

URN:: urn:nbn:de:zbw-retromon-101382

Document type:: Monograph

Author:: Weber, Heinrich http://d-nb.info/gnd/11716383X

Title:: Forstwirtschafts-Politik

Place of publication:: Neudamm

Publisher:: Neumann

Year of publication:: 1926

Scope:: X, 324 S; Taf

Digitisation:: 2020

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Erster vorbereitender Teil. Die deutsche Forst- und Holzwirtschaft der Gegenwart

Collection:: Economics Books

106 NATURE OF CAPITAL AND INCOME [Cmae. VII The choice of the commodities to be included has usually fallen on the less durable varieties, such as food, fuel, and clothing, while the objects the uses of which have been included have been the more durable instruments, such as dwelling-houses. In the case of intermediate types, such as carriages, furniture, and musical instruments, no fixed rule seems to have been observed. Some economists are inclined to regard a newly acquired piano as a part of real income, others to regard the music which comes from it as the real income, while still others apparently regard both the piano and its music as real income. Evidently such a patchwork of arbitrarily selected elements is in- capable of furnishing any consistent, reliable, and logical theory of income. § 4 The only true method, in our view, is to regard uniformly as income the service of a dwelling to its owner (shelter or money rental), the service of a piano (music), and the service of food (nourishment); and in the same uni- form manner to exclude alike from the category of income the dwelling, the piano, and even the food. These are capi- tal, not income; and the instant we include any such con- crete wealth under the head of income, that instant we begin to confuse capital and income. The newly purchased or newly constructed house is not an element of income, but of capital. The income appears afterward in the services the house yields its owner, — the shelter it affords through subsequent years or the bringing in of a money rent to its owner. In like manner the newly acquired piano and loaf of bread are not income, but capital. Their income fol- lows later in the form of piano music and nourishment. No reason has ever been given why the short-lived bread should be treated differently from the long-lived dwelling. The use of the bread is just as distinct from the bread as the use of the dwelling is distinct from the dwelling. The

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