earning-capacity

Updated: May 2, 2025

One need only recall the paramount importance which is popularly attached to the maintenance and extension of the nation's trade for the use of the investors or the perpetuation of a protective tariff for the use of the protected business concerns or, again, the scrupulous regard with which such a body of public servants as the Interstate Commerce Commission will safeguard the legitimate claim of the railway companies to a "reasonable" rate of earnings on the capitalised value of the presumed earning-capacity of their property.

Thorstein Veblen - An Inquiry Into The Nature Of Peace And The Terms Of Its Perpetuation

Commonly, however, when earnings rise to a striking figure, the business will be recapitalised on the basis of its earning-capacity, by issue of a stock dividend, by reincorporation in a new combination with an increased capitalisation, and the like.

Thorstein Veblen - An Inquiry Into The Nature Of Peace And The Terms Of Its Perpetuation

There is in the modern development of technology, and confidently to be counted on, a continued flow of new contrivances and expedients designed to supersede the old; and these are in fact successful, in greater or less measure, in finding their way into profitable use, on such terms as to displace older appliances, underbid them in the market, and render them obsolete or subject to recapitalisation on a lowered earning-capacity.

Thorstein Veblen - An Inquiry Into The Nature Of Peace And The Terms Of Its Perpetuation