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 subjective
 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 income
 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 nature
 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 disagreeable
 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 positive;
 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.