The collapse of plutocracy; a forecast of the development of institutions

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated.1902 Excerpt: ... CHAPTER V ILLUSTRATIONS OF THE PRINCIPLE OF DISTRIBUTION In the preceding chapter we have endeavored to show that all wealth is divided on some basis, between the two co-operating factors to its production, labor and capital. Stating the principles of wealth distribution therein enunciated, algebraically, we have the formula: Revenue = Wages + Profits or Wages = Revenue-Profits or Profits = Revenue-Wages In order to thoroughly grasp, in its more practical ramifications, the abstract principle that all revenue produced is distributed between labor and capital as wages and profits; and also to more clearly understand the basis and character of the distribution between these two co-operating factors, in this chapter I propose to specifically consider a few concrete examples of income, production and distribution. ON THE DISTRIBUTION OF THE REVENUE ARISING FROM MANUFACTURE We will suppose the gross revenue (i. e., the revenue remaining for distribution after providing for depreciation or wear and tear upon capital), resulting from the yearly operations of a cotton, woolen or flouring mill; of a steel plant or any other manufactory to be $100,000. The whole of this gross revenue necessarily accrues to labor as wages, saving what the owner or owners of the means of its production retain as profit. Thus, if the capitalist retains $25,000 then labor gets $75,000; if, say, $50,000, then labor also gets $50,000; and, if the capitalist retains $75,000 then labor gets $25,000. The workman always secures the whole results of production, except the profit. He takes everything save what the capitalist either foolishly overlooks or fails to take because he is unable to do so. ON THE DISTRIBUTION OF THE REVENUE PRODUCED IN THE MINING INDUSTRY In a western mining camp, where...