Monday, July 15, 2019

The original sources of revenue

Adam Smith:
Wages, profit, and rent, are the three original sources of all revenue as well as of all exchangeable value. All other revenue is ultimately derived from some one or other of these.
The creation of output is the "original source" of income.

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Bezemer and Hudson:
To the extent that the FIRE sector accounts for the increase in GDP, this must be paid out of other GDP components.
The financial sector is not an "original source" of income.

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