Income can be used as a synonym for profit or income.
Income is the utility or benefit that something yields or what is collected from it. The term, which comes from the Latin reddĭta , can be used as a synonym for income in some circumstances. For example: “Two years ago I bought an apartment on the beach and today I get an income of five hundred dollars a month,” “The annual income from the investment is very advantageous.”
In this sense, it is important to establish that when talking about a country, the term income is also used as a synonym for income . In this case, this task of collecting capital is carried out based on a series of criteria such as per capita income , which establishes the relationship between the number of inhabitants and the gross domestic product. The latter is also used as a criterion for quantifying income, exactly to determine the economic value of the production of goods and services of a specific nation in an established time.
Feudal and population income
It is interesting to highlight the fact that centuries ago there was a so-called feudal income. Specifically, it came to define the process by which the clergy and the upper classes of the medieval social hierarchy, the nobles and kings, appropriated the surpluses that the production mechanisms of the peasantry had.
Specifically, the first ones became rich and benefited from this situation either through the money that the peasants had to pay them or through spices, which became part of the crops they harvested annually.
However, in History there has also existed what was called population income . When the Catholic Monarchs reconquered Granada was when this rent was created in these Andalusian lands, which was a tax that Christians who wanted to become owners of land and homes had to comply with. In this case, not only did they have to pay what these costs but they also saw the need to give a financial amount to the Church.
The amount paid as rent can be mentioned as rent.
Rental and capital distribution
Income is also what is paid as rent or lease: “I hope to collect in the next few days since I have to pay the rent for the apartment,” “This business is no longer profitable: the rental of the machinery is very expensive.” .
The distribution of capital that is carried out in different periods is known as financial income . This means that these capitals have different maturity dates. Constant financial income is one that does not change in the various periods, while variable financial income can be modified according to different circumstances.
Economists refer to the distribution of income to name the way in which the material resources of a society are distributed among the different classes. The most egalitarian nations or those with the highest level of equity are those in which the upper or dominant classes monopolize an income not too different from that received by the rest of the social classes.
In many countries, there is an income tax that taxes the income of individuals and/or companies. Typically, it is calculated as a variable percentage depending on income level.