"[We may view the] economic organization as a system of prize relations. Seen in the large, free enterprise is an organization of production and distribution in which individuals or family units get their real income, their "living," by selling productive power for money to "business units" or "enterprises", and buying with the money income thus obtained the direct goods and services which they consume. This view, it will be remembered, ignores for the sake of simplicity the fact that an appreciable fraction of the productive power in use at any time is not really employed in satisfying current wants but to make provision for increased want-satisfaction in the future; it treats society as it would be, or would tend to become, with progress absent, or in a “static” state."
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Economists from the United StatesCornell University alumniPeople from IllinoisUniversity of Chicago faculty
Original Language: English
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p.59-60; on the circular-flow of income and the circular-flow diagram.
https://en.wikiquote.org/wiki/Frank_Knight
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Frank Knight
(November 7, 1885 – April 15, 1972) was an American economist, who spent most of his career at the , where he became one of the founders of the .
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