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Family A gets $5,000 worth of goods this year, family B five times as much--how is the division to be decided? The incomes of individuals are determined by the quantities of resources labor skills, capital in all its forms they own and the prices they receive for the use of these resources. Workers are incited by the price system to acquire new skills and to exercise them diligently, and families are encouraged to savings (capital accumulation) by the payment of interest or dividends...
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Workers are incited by the price system to acquire new skills and to exercise them diligently, and families are encouraged to savings (capital accumulation) by the payment of interest or dividends. The inheritance of both personal ability and wealth also enter into the distribution of income.
Individuals must be distributed among occupations in such a way as to serve two basic purposes...
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