Talk:Returns (economics)

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In the "Wealth of Nations" and in "Principles of Political Economy and Taxation" the word "profit" is employed tp discuss the return to capital stock. The "return" to loned money is termed "interest" and is not considered a factor of production or a component of prices. That is, to me, very strange. But it is as it is. I wrote this page and I am now going to correct it. The return to "capital" in classical econ is, in fact "profit".

[edit] Profit and Interest

And Now I am going to do both profit and interest because that is what Smith and Ricardo actually did. They could never seem to make up their alleged minds as to whether money is "capital" or just "money". But they do a very good job of using the word "stock" as opposed to money or capital. Stock is _ALWAYS_ "capital stock" as there is no "wages stock" or "rent stock". Henry George latter takes the position that it makes no difference and he refers to the return to money or stock as "interest" and totally drops the word profit except in an accounting sense having nothing to do with distinct returns to factors of production.--The Trucker (talk) 03:28, 28 December 2007 (UTC)

[edit] Graph of returns

Why did we choose a 20% annual interest rate for the chart? That seems unusually high, such as might exist in times of high inflation. 5% or even 7% would seem more typical. The caption should note that the graph does not include taxes and other costs nor does it include inflation as a factor. ·:· Will Beback ·:· 01:06, 5 April 2008 (UTC)