Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

338 Money, Bank Credit, and Economic CyclesTABLE V-4GROSS INCOME AND NET INCOME FOR THE YEAR(following 25 m.u. of voluntary net saving)Gross Income for the Year75 m.u. of final consumption + 295 m.u.of total supply of present goods(Gross Saving and Investment as shown in detail in Table V-3)(Note: Gross saving and investment grow by 25 m.u., from 270 to295; and consumption shrinks by 25 m.u., from 100 to 75)Total Gross Income: 370 m.u.Net Income for the Yeara) Net Income Capitalists 1st stage: 75.00 – 73.75 = 1.25Received by Capitalists 2nd stage: 64.25 – 63.18 = 1.07Capitalists Capitalists 3rd stage: 53.50 – 52.61 = 0.89(Profit or interest Capitalists 4th stage: 42.75 – 42.04 = 0.71at each stage) Capitalists 5th stage: 32.25 – 31.71 = 0.54Capitalists 6th stage: 21.50 – 21.14 = 0.36Capitalists 7th stage: 10.75 – 10.57 = 0.18Total profits, interest or_____net income received bycapitalists at all stages: = 5.00 m.u.b) Net Income From stage 1: 9.50Received by From stage 2: 9.68Owners of the From stage 3: 9.86Original Means From stage 4: 9.79of Production From stage 5: 10.21(labor and From stage 6: 10.39natural resources) From stage 7: 10.59Total net income receivedby owners of the originalmeans of production:Total Net Income = Total Consumption_____70.00 m.u._____75.00 m.u.CONCLUSION:The Gross Income for the Year is equal to 4.9 timesthe Net Income