Are you an EPFL student looking for a semester project?
Work with us on data science and visualisation projects, and deploy your project as an app on top of Graph Search.
Concept
Property income
Summary
Property income refers to profit or income received by virtue of owning property. The three forms of property income are rent, received from the ownership of natural resources; interest, received by virtue of owning financial assets; and profit, received from the ownership of capital equipment. As such, property income is a subset of unearned income and is often classified as passive income.
Property income is nominal revenues minus expenses for variable inputs (labor, purchased materials and services). Property income represents the return for the supply of both physical capital and financial capital.
Capitalist economic systems are usually defined as those systems where the means of production are privately owned through equity, stock, bonds or privately held by a group of owners who bear the risk of investment and production to generate returns.
In Marxian economics and related schools, property income is a portion of the surplus value produced by an economy, where "surplus value" refers to value beyond what is needed for subsistence. As such, income derived through property ownership constitutes a type of "unearned income" on the basis of economic exploitation for the capitalist class that receives and lives off of property income, because its recipients receive property income by virtue of owning property regardless of their contribution to the social product. As such, the existence of property income based on private property forms the basis for the class division in capitalist economies.
One economic perspective is to bring productive property under public ownership so that each citizen would receive a share of the property income in addition to their normal wage or salary (see: Social dividend). This would eliminate class distinctions, reduce economic inequality, and enable greater economic stability.
Official source
About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.