Principles of Political Economy, Vol. 2

Income Classification and Definition

This theme is central to the entire volume, as Roscher dedicates significant effort to precisely defining and categorizing different forms of economic inflow. He meticulously distinguishes between "receipts" (any inflow), "produce" (goods or services generated), and "income" (that portion of produce available for consumption or investment after costs, derived from productive activities). Further, he breaks down income into "gross," "net," and "free" income, each with specific implications for economic analysis and policy. This granular approach aims to provide a clear, unambiguous lexicon for political economy.

Productive Activity and Wealth Generation

Roscher strongly emphasizes that true "income" is derived exclusively from "productive economic activities." This concept is foundational to his understanding of how national wealth is generated and sustained. He likely differentiates between activities that create new goods or services (productive) and those that merely transfer existing wealth or provide services deemed non-productive by his 19th-century standards. This focus shapes his views on what genuinely contributes to societal progress and what merely consumes existing resources.