ABSTRACT

The models developed in Chapter 7 gave little attention to labor as an explicit input to production. It was simply noted that a portion of the commodity input requirements in each industry went to meet the workers' subsistence needs. Nothing was said about how much this amount exactly was. Total workers' income, then, was this unspecified amount plus whatever was left of the surplus after profits were paid. Until this problem is clarified, little more can be said about income distribution and price determination.