The annual revenue is the gross revenue.
The term net production is applicable only when considering the
interests of one producer in opposition to those of other
producers. The manager of an enterprise gets his PROFIT from
the value PRODUCED after deducting the value CONSUMED. But
what to him is value consumed, such as the purchase of a
productive service, is so much income to the performer of the
service.--Treatise on Political Economy: Analytical Table.
These definitions are irreproachable. Unhappily J. B. Say did
not see their full bearing, and could not have foreseen that one
day his immediate successor at the College of France would attack
them. M. Rossi has pretended to refute the proposition of J. B.
Say that TO A NATION NET PRODUCT IS THE SAME THING AS GROSS
PRODUCT by this consideration,--that nations, no more than
individuals of enterprise, can produce without advances, and
that, if J. B. Say's formula were true, it would follow that the
axiom, Ex nihilo nihil fit, is not true
Now, that is precisely what happens.
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