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Income and Wealth

  • Peter Curwen
Chapter
Part of the Macmillan Texts in Economics book series (TE)

Abstract

Before proceeding any further, it is important to clear up a misunderstanding which, to judge by their utterances over the years, is particularly prevalent among politicians but which is also made too little of in introductory textbooks, and which concerns the distinction between the concepts of income and wealth. Income is a flow — that is, it appears in a series of instalments over time, for example weekly, monthly or yearly. Most income is earned, and consists primarily of payments in return for labour inputs, that is, wages and salaries as shown in Table 2.2. However, it may also be unearned, in the form, for example, of rent, interest and dividends. Some also appears as transfer payments, for example payments to the unemployed.

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Copyright information

© Peter Curwen 1997

Authors and Affiliations

  • Peter Curwen

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