ABSTRACT
We may consider first the determinants of profits in a closed economy in which both government expenditure and taxation are negligible. Gross national product will thus be equal to the sum of gross investment (in fixed capital and inventories) and consumption. The value of gross national product will be divided between workers and capitalists, virtually nothing being paid in taxes. The income of workers consists of wages and salaries. The income of capitalists or gross profits includes depreciation and undistributed profits, dividends and withdrawals from unincorporated business, rent and interest. We thus have the following balance sheet of the gross national product, in which we distinguish between capitalists’ consumption and workers’ consumption: https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
Gross profits
Gross investment
Wages and salaries
Capitalists’ consumption
Workers’ consumption
Gross national product
Gross national product
