The Division of Income between Workers and Property Owners.

§1. The argument of the last chapter will now be applied to the broad problem of the division of the total product, or income, between workers on the one hand and property owners on the other. ¹ It will be necessary, to begin with, to think in terms of a number of homogeneous units of work on the one side, and of a number of homogeneous units of property on the other. Then changes in the division of income between workers on the one hand and property owners on the other depend upon the elasticities of demand and supply for work and for property, and upon the extent to which work and property are complementary or rival factors of production.