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Home› Part II – Political economy propositions› Chapter 8 - Distribution›Proposition 8.3
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8.3 Two refusals of long-term change govern the distribution of overall income.

1. The social body refuses to allow the rates of return on investments to rise from generation to generation.

If this were to happen, the fact that total income (TI) is the sum of total saving placement income (SI) and total labor income (LI) would cause the relative share of TR in GR to decrease. However, the periods of a few quarters (or years) during which this decline is initiated inevitably lead to reactions that stop the increase in the relative share of SI in RG.

2. The social body refuses that if the total income (TI) increases, the average income from work does not also increase.

Common sense knows, through reasoning and experience, that it is always new work that makes investments in market activities profitable.

3. The theory of the distribution of total income, RG, contributes to the realization of these two refusals by making them normative pivots.

Pivot 1: RP should be considered potentially sufficient.

Pivot 2: RT and the average wage must be considered irremediably insufficient.

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