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In the previous chapter, we defined wealth as a stock —a reservoir of value at a given moment. We explored its components: tangible and financial assets, less any liabilities. Now, we turn our attention to the river that fills, and sometimes empties, that reservoir: income . We experience income in our daily lives—a weekly wage, a monthly salary, a dividend payment , or even a gift from a relative. But what is it, really? Where does it come from, and what are its different forms? This chapter will dissect the concept of income, moving from the familiar to the fundamental, and address some of the enduring philosophical questions it raises. 2.1 What is Income? At its simplest, income is a flow of value received over a period of time. It is the reward for providing something of value to others. Unlike wealth, which is a snapshot, income can only be measured with a time dimension: euros per hour, dollars per year. In the most basic economic sense, income is the return on the three facto...