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.
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Un revenu passif est une forme de revenu qui représente un flux de trésorerie perçu sur une base continue qui demande un minimum ou aucun effort de suivi de la part de son bénéficiaire pour le maintenir. En opposition à un revenu actif, qui dépend du temps et de l’intensité du travail fourni, un revenu passif n’est pas corrélé à la productivité ni au temps et ne nécessite pas une présence physique. Néanmoins, la constitution d'un revenu passif nécessite souvent un investissement financier et des efforts importants.
Unearned income is a term coined by Henry George to refer to income gained through ownership of land and other monopoly. Today the term often refers to income received by virtue of owning property (known as property income), inheritance, pensions and payments received from public welfare. The three major forms of unearned income based on property ownership 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.
vignette|Oeuvre Le premier Tracteur de Wladimir Gawriilowitsch Krikhatzki La socialisation des biens est suivant la théorie de Karl Marx et Friedrich Engels une étape dans le processus de transformation d'une société capitaliste à une société communiste qui se distingue par l'abolition de l'héritage et de la propriété privée des moyens de production et par l'appropriation de ceux-ci par la collectivité.
We investigate whether corporations and their executives react to an exogenous change in passive institutional ownership and alter their corporate governance structure. We find that exogenous increases in passive ownership lead to increases in CEO power an ...