The National Income

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The National Income

Everything that is produced and sold returns income to somebody. From the sale somebody gets a profit, a wage, a salary or, if no profit, a loss that is a gain to someone else. The value of the product is one side of the account, the income the other side of the same account. Gross National Product and National Income are not, in fact, quite equal; some things go into the value of a product that don't come out as income.

In the years following the Second World War, economic growth, meaning the increase in Gross National Product, became the test of national economic performance and to some extent of national virtue. A country was known to be doing well or badly in accordance with its percentage rate of annual increase in GNP.

We never tire of our own aphorisms: eventually it came to pass that when economists and politicians presented themselves at the Holy Gate, Saint Peter asked only what they had done to increase the GNP. Japan was the greatest success in this period because it had the greatest increase in Gross National Product. The British were the wretched of the earth because of their low annual increase in GNP.

Learn More About Say's Law

Inflation And Unemployment

There is no mystery, inflation is steadily rising, some going up, others going down, but all or most going up together. This, needless to say, includes wages and salaries, at least of the fortunate. Our great definition of unemployment comes down to us from Calvin Coolidge. He said, 'When a great many people are out of work, unemployment results,' - You got similar wisdom, we believe, from Monsieur de la Palisse.

What is the definition of economic growth? Why do people talk about it so much? Why does every politician praise himself for the growth he has achieved - or will achieve? Economic... see: Inflation And Unemployment

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