ABSTRACT
This chapter considers in The Stationary Economy the importance of the distinction between the effects of price changes upon the distribution of income and their effects upon the efficiency of the economic system. It illustrates the importance of these two distributions by building our models upon either one or the other of two possible extreme assumptions about the distribution of earning power and of the ownership of property between individuals. The chapter explores a perfectly equal distribution of earning power between all individual citizens and a perfectly equal distribution of the ownership of property between them. In a Propdem every citizen is like every other citizen in that all earn the same wage rate and all own the same amount of property. Propdems, Plantcaps, and Propcaps are not the only possible forms of Society. Governmental measures may be taken to make a Propcap function more nearly as a Propdem and less as a Plantcap.
