securities by corporations will depress security prices (i.e. the valuation ratio v) just enough to reduce the sale of securities by the dis-savers sufficiently to induce the net savings required to take up the new issues. If i were negative and the corporations were net purchasers of securities from the personal sector (which they could be through the redemption of past securities, or purchasing shares from the personal sector for the acquisition of subsidiaries) the valuation ratio v would be driven up to the point at which net personal savings would be negative to the extent necessary to match the sale of securities by the personal sector. Kaldor is clearly laying out equilibrium condition by which, ceteris paribus, the stock of savings in existence at any given time is matched to the total numbers of securities outstanding in the market. He goes on to state: In a state of Golden Age equilibrium (given a constant g and a constant K/Y, however determined), v will be constant, with a value that can be ><1, depending on the values of sc, sw, c, and i. In this sentence Kaldor is laying out the determination of the v ratio in equilibrium (a constant g and a constant K/Y) by: the savings out of capital, the savings of workers, net consumption out of capital and the issuance of new shares by firms. Kaldor goes further still. Prior to this he had asserted that "the share of investment in total income is higher than the share of savings in wages, or in total personal income" is a "matter of fact" (i.e. a matter of empirical investigation that Kaldor thought would likely hold true). This is the so-called "Pasinetti inequality" and if we allow for it we can say something more concrete about the determination of v: [One] can assert that, given the Pasinetti inequality, gK>sw.Y, v<1 when c=(1-sw). i=0; with i>0 this will be true a fortiori. This fits nicely with the fact that Kaldor's v and Tobin's q tend on average to be below 1 thus suggesting that Pasinetti's inequality likely does hold in empirical reality. Finally, Kaldor considers whether this exercise give us any clue to the future development of income distribution in the capitalist system. The neoclassicals tended to argue that capitalism would eventually liquidate the capitalists and lead to more homogenous income distribution. Kaldor lays out a case whereby this might