CH. 9

CERTAIN DEFINITIONS

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(ii.) Available and Non-Available Output

The current output 1 of the community, as distin-guished from its money-income, is a flow of goods andservices, which consists of two parts— (a) the flow ofliquid goods and services which are in a form avail-able for immediate consumption, and (6) the net flowof increments (after allowing for wastage) to capital-goods and to loan capital (to be defined more particu-larly in the next section) which are not in a formavailable for consumption. We shall call the former“liquid” or “available” output; the latter “non-available ” output; and the two together total out-put. It will be observed that the available outputmay either exceed or fall short of the total output,according as the non-available output is positive ornegative.

The liquid or available output is made up of twostreams, namely, (a) the flow of use accruing from fixedconsumers’ (or final) capital, and ( b ) the flow of con-sumers’ (or final) goods emerging from the productiveprocess in a liquid form. 2

The non-available output is made up of (a) theexcess of the flow of increment to unfinished goodsin process over the flow of finished goods (whetherfixed or liquid) emerging from the productive pro-cess, and ( b ) the excess of the flow of fixed capitalgoods emerging from the productive process over thecurrent wastage of old fixed capital, together with thenet increase in loan capital.

It follows that current consumption must be equal

1 Meaning by this all output for which the factors of production areremunerated, including amongst the factors of production the owners ofcapital, and therefore including in output the current use of fixed con-sumption capital and income from foreign investments.

2 Including in these, for the sake of convenience, not only goods theproduction of which occupies an appreciable time, but also goods theconsumption and production of which are capable of proceeding almostpari passu, e.g. personal services ; for there is no sharp line between the two.