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II. 3orao3 Incone
In dealing with unearned income, wealth had been used
os o abate variable* It is natural to extend this idea.
Incone depends also on education, training, status,
fondly connections etc, -.rkich are in c cense inherited
Hire wealth., end result fron a oosrt of "iaveotnent" of
incone by preceding generations, On an abstect level
wo can spool: of "Incore potential” which eebodiea oil
the forms of 8 invostnent M mentioned* Shore ore certain
differences between the various form of income poten-
tic Is liiecstion is passed on to the children os they
grow up, while the inheritance of wealth has usually
to wait for the dor.
It is tempting to speculate on on equalization of the roto
of return between the different forme of investment} this
wcmlu. ruihe it* easy to gonorrliae results on the distri
bution of ineomo. Wo know, however, -that equalisation
of return is not likely* And we must beware of drawing
to close a parallel between naterial wealth and
educational investment. It aeons that beyond a certain
range it is loss end less easy to increase educational
investednt further. Of course, there is no absolute
limit: Indeed there nre always possibilities of further
investment (in learning on the ^ob), an: the quality of