Full text: Income Distribution: Line of Reasoning (Fassung 1)

It is required by the above that the grades or rather the 
difference bitween the grades should be measurable. 
This measure would be provieded by the scale of operations 
which again, in my interpretation, has something tquo with 
the information spg.ce of the individual. 
The relative income differentials - income per grade times so 
many percent gives the income of the higher grade,— 
are determined by a kind of random walk governed by technical 
developmen^ind organisational development - making for a 
diffusion process; this will be counteracted by competition 
through the appearance of new supply - training and eduction 
of people. Teh distribution of grades will thek.determine the 
frequency of income receivers in varions classes. 
The diffusion of managers and stars earnings may be regarded 
as a change in thecapitalist system - a shift of incomes from 
wealth to these"new men". It remains to be decided, however, 
whether the excess incomes of these people are an "additional 
exploitation", in other words whether they are paid by the 
workers, or whether they are derived incomes, representing 
a share in the surplus of capitalist which the latter are 
gracing to the new men for one reason or another ( Baran-Sweezy 
would say for the purpose of expanding effective demand , in 
other wonds as a counter to underconsumption. ) 
The old classics' ideas about derived income may still 
prove quite useful in the event. 
The manager may be likendd to the oa.ior domus who ultimately 
replaces the letigimate owner who has become decadent. 
What is the basis for the position of the manager since it 
is not wealth? One might say it is the distribution of power, 
but that is not very revealing. I should say it is the scope of 
his information over which he rules ( he is like the spider in 
the center of a net ). This is of course the snjae as the 
scale of operations concept used by T.Mayer, ^he distribution of 
ability and earnings, fi.E.&S-t.i960.

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