on the purchases of goods (X Y Z) for personal : homes is for the wages of the labour services; (ii) that (broken line 2) there are daily transfers of money from one firm to another in pay- ment of the instruments of production transferred from one firm to another, (iii) that (broken line 3) there is a daily payment from the firms and farms to the money and capital market of interest, profits, firms and farms; (vii) that (broken line 7) there is a daily flow of funds from the money and capital market to the homes in the form of interest, dividends, profits, repayments of principal, etc., to the

doi:10.4324/9780203106594-82

Chapter

on the purchases of goods (X Y Z) for personal

Chapter

homes is for the wages of the labour services; (ii) that (broken line 2) there are daily transfers of money from one firm to another in pay- ment of the instruments of production transferred from one firm to another, (iii) that (broken line 3) there is a daily payment from the firms and farms to the money and capital market of interest, profits, firms and farms; (vii) that (broken line 7) there is a daily flow of funds from the money and capital market to the homes in the form of interest, dividends, profits, repayments of principal, etc., to the

ABSTRACT

The main differences between Figures 1 and 37 can be summarized under three heads.

First, in Figure 37 there are the movements of instruments of production and the payments for them between the firms. Such transactions did not exist in Figure 1 because the private citizens (as contrasted with the entrepreneurs running the firms and farms) were previously assumed to purchase the instruments of production (K and N) and to hire out their services to the firms and farms just as they hired out the services of their own labour. Now the private citizens hire out only their labour services. The firms and farms purchase outright for their own ownership the instruments of production (J, K, N).