What “Distribution” Really Means Economists talk about distribution as how wages, prices, and returns on capital naturally settle in a market. In a truly free market, these prices move freely — labor flows to where wages are higher, capital flows to where returns are better, and goods find buyers who value them most. Big economists like Ludwig von Mises and Murray Rothbard explain that this process of adjustment is ongoing — it never stops — but it tends toward equilibrium over time as supply and demand interact. In fact, about three-quarters of national income goes to workers in competitive labor markets, reflecting how wages are set by supply and demand rather than by central dictates. This dynamic process is one…
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