Spencer Heath Archive

Item 1894

Notes for a form letter for circularizing a projected article on national income.

1957?

 

 

 

 

Dear Sir:

 

     There is a whole lot of confusion about just what is the national income and how to figure it. I think there would be less confusion if economists would entertain more generally the fact that in an exchange or market economy the only things that can be taken account of are the contri­butions of services and goods to the market. Things that are not contributions to the market do not have any social or economic significance because they do not involve any relationship between people that can be expressed in numerical terms and thereby have statistical significance.

 

                                 Sincerely,

 

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     In the considerable discussion that goes on concerning the national income there is no general agreement as to the manner in which the national income is properly to be ascertained.

 

     We believe this is due in part at least to failure to take into account the general market as the clearing house into which the entire productivity of our system is pooled. We consider it very important that contributions of services and of the service industries be taken into account no less than contributions of the physical goods often referred to as the products of labor applied to land and as comprising the entire annual production.

 

     Since almost everyone is concerned with how the national income is distributed, it would seem important to have a clear idea first as to exactly what it is. The enclosed explanation is submitted for your consideration and comment.

 

     Yours for better understandings of our system of contractual cooperation.

 

Sincerely,

 

Secretary

 

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     In the interest of  a better understanding of our system of contractual cooperation we have prepared the enclosed explanation which we submit herewith for your consideration and comment.

 

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