ABSTRACT
§ 1. In any series of processes directly or indirectly producing any class of goods, a quantitative relation must subsist between the capital and labour employed in the several processes; also between the rate of production and the rate of consumption, or withdrawal. This rule will also hold of industry as a whole.—§ 2. In a stationary society the money spent by consumers, passing up the industrial stream, stimulates the continuous processes of production and furnishes all money incomes. The real income consists of commodities and services, which are consumed as fast as they are produced.—§ 3. In a progressive society some money-income must be saved, i.e. applied to buy more new capital goods, Saving is a stimulation of certain parts of the industrial system in preparation for enhanced spending and consumption. Individual saving need not cause increase of productive capital, social saving must.—§ 4. There exists at any time an economically right ratio of saving to spending, having regard to the probable growth of future consumption and the changes in industrial arts. This right adjustment may be disturbed by over-spending or over-saving.
