ABSTRACT
Voluntary exchange defines market economies. Classical economists, Marx and some others have developed a different view, grounding the division between wage-earners and entrepreneurs on the ownership of the means of production. A major "stylized fact" about entrepreneurs and wage-earners in our economies is that both categories of people are in the same qualitative position in the markets for commodities but they are in a qualitative opposed position in the "market for labour" and in production. According to Schumpeter it is the ability to benefit from money creation through bank credit which is the distinctive feature of entrepreneurs. The outstanding characteristic of the circulation when entrepreneurs and wage-earners are differentiated is that both are components of the specific entity called firm. Flows of payment from firms to wage-earners are wages while those from wage-earners to firms are consumption payments. In an entrepreneur economy, the question of the level of activity is qualitatively different.
