CHAPTER  IX

PROBLEMS  OF  DISTRIBUTION
It  is  now  my  intention  to  discuss  some  details
and  practical  points  connected  with  the
abstract  theory  of  distribution  already  set
forth,  but  before  doing  so  it  will  be  as  well
to  repeat  in  what  the  gist  of  this  theory
consists.  Broadly  put  the  modern  doctrine
of  distribution  affirms  that  payment  for  the
employed  agents  in  production  is  settled  by  the
forces  of  demand  and  supply.  The  demand
for  a  factor  is  supposed  to  measure  the
marginal  worth  of  that  factor  to  employers,
in  view  of  the  existing  supplies  of  other  factors,
while  its  supply  forces  mean  the  prices  at
which  different  quantities  of  that  factor  will  be
forthcoming.  As  regards  the  employer,  his
remuneration  for  the  work  that  he  does,  apart
from  payment  for  his  capital,  is  represented
as  what  is  left  over  after  payment  for  the
employed  agents  ;  and  it  is  maintained  that
this  amount,  in  the  case  of  the  employer  of
marginal  capacity,  tends  to  equal  his  supply