Spencer Heath Archives

Item 737

Pencil by Heath on notepad paper.

No date

     The assembling of various kinds of properties and services into a single or united ownership and redistributing them in modified form — all assembling and redistributing being by the social process of free contract and exchange — is the conduct or administration of a business or free enterprise. All administration of free enterprise is carried on directly by or under authority of those who are or by purchase become the owners of the properties and services engaged in the enterprise.

     The owning authority of an enterprise purchases and recompenses the use of three kinds of services and sells and is recompensed for the use of four.

1. For the use of current services it pays wages (including salaries etc.).
2. For the limited use of credit or currency as generalized property or services wherewith to obtain the use of specific property it pays interest.
3. For the limited use, simultaneously or successively with others, of property in common with others, it pays rent.

If in either case the use obtained is unlimited as to time, it pays price or capital value and foregoes and thus indirectly pays interest or rent.

To the three services for which it pays wages, interest and rent, the owning authority contributes its own administrative and supervisory services, both productive and distributive, and sells the combined four services in the form of services or of property or of its use for a combined recompense called gross income. The net recompense, if any, above that part of the gross required for payment of wages, interest and rent is the contingent recompense for proprietary, administrative or ownership services. This contingent recompense is called profit. It is distinguished from wages, interest and rent in that its rate or amount, if any, is not determined by the terms of any contract in advance, but is contingent upon the social serviceableness and efficiency with which the administrative services are performed.