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"To each according to his contribution" is a principle of distribution considered to be one of the defining features of socialism. It refers to an arrangement whereby individual compensation is representative of one's contribution to the social product (total output of the economy) in terms of effort, labor and productivity.[1] This is in contrast to the method of distribution and compensation in capitalism, an economic and political system in which property owners can receive income by virtue of ownership irrespective of their contribution to the social product.[2]
The concept formed the basic definition of socialism for its pre-Marxist proponents, including Ricardian socialists, classical economists, collectivist anarchists and individualist anarchists, as well as for Marx, who contrasted it with "to each according to his need" as the corresponding principle of completed communism.
- ^ Gregory and Stuart, Paul and Robert (2003). Comparing Economic Systems in the Twenty-First. South-Western College Pub. p. 118. ISBN 0-618-26181-8.
Under socialism, each individual would be expected to contribute according to capability, and rewards would be distributed in proportion to that contribution. Subsequently, under communism, the basis of reward would be need.
- ^ O'Hara, Phillip (September 2003). Encyclopedia of Political Economy, Volume 2. Routledge. p. 1135. ISBN 0-415-24187-1.
Property income is, by definition, received by virtue of owning property. Rent is received from the ownership of land or natural resources; interest is received by virtue of owning financial assets; and profit is received from the ownership of production capital. Property income is not received in return for any productive activity performed by its recipients.