bloxBuild v.3

Rents, Wages and Profits

defines three kinds of peoples

(Economy)

2971
diagram of ebb and flow economy

 “…Smith was the first important economist to distinguish clearly between profits that accrued to industrial capital and wages, rents and profits on merchant capital. He was also the first to appreciate the significance of the fact that the three principal categories of income – profits, rents, and wages, – corresponded to the three most important social classes in the capitalist system of his day – capitalists, landlords and the ‘free’ laborers who could not live unless they sold their labor power for a wage.”

E.K. Hunt, “History of Economic Thought: A Critical Perspective”

 

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