5 ms·

Learning a new skill or trade doesn't give you access to the "means of production", capital does. And inequality is as bad as it's ever been over the past 50 ye

by zajd 11y ago

Learning a new skill or trade doesn't give you access to the "means of production", capital does. And inequality is as bad as it's ever been over the past 50 years. A few tech startup darlings doesn't change that.

jerf 11y ago
Learning a new skill or trade is capital. Capital is not just hard equipment. To the extent that was an acceptable approximation in the 20th century, it's less so today. To forstall the next likely objection, no, of course it is not the only form of capital. And "less so" != "completely the opposite of". And further, obviously, learning a trade isn't millions and millions of dollars worth of capital, nor does it instantly catapault you into the leagues of the wealthy, just because you learned how to fix plumbing or write code. And it obviously isn't liquid. But it is a form of capital. If you don't understand this, you can't understand unions. If labor doesn't have this capital, then unions can't work, because if labor really are just interchangable cogs that bring nothing but mere clock time to the equation, then labor has no bargaining position whatsoever. Unions only work because labor has this illiquid capital to bargain with. (There are some obvious further elaborations on this theme, such as the way the capital gets devalued by increasing the supply by globalization, and the continuous importation of cheap labor via illegal immigration. IMHO there's a certain amount of contradiction in being shocked at how labor is devalued in the market place and being pro-"open borders". It may not be the only cause and effect, but it's certainly involved.)
- zajd 11y ago
  I never said capital was simply hard equipment, but I'd like to hear what your definition of capital is that "learning a new skill" falls under that? I mean, we're talking economics here so there's a level of interpretation for definitions, but I've never heard of someone claiming that skills are capital. It feels like you're going with the "Everything is capital" route, which devalues the word in the first place.
  - matwood 11y ago
    Human capital is a standard economic term. https://en.wikipedia.org/wiki/Human_capital#Background https://en.wikipedia.org/wiki/Human_capital#Background The improved dexterity of a workman may be considered in the same light as a machine or instrument of trade which facilitates and abridges labor
  - hderms 11y ago
    He's using the notion of "human capital" which I think is clearly different enough from ordinary capital so as to deserve a different term. Human capital can beget ordinary capital if someone works hard for many years, saving their money and reinvesting it, but your average office worker is no more a 'capitalist' than a temporarily homeless man looking for work. Human capital seems differentiated by the fact that it ultimately is traded on the market for wages and generally doesn't translate into any kind of meaningful ownership of the fruits of capital.
    - jerf 11y ago
      "He's using the notion of "human capital" which I think is clearly different enough from ordinary capital so as to deserve a different term" Sort of yes, sort of no. It's important to understand that "physical capital" isn't some sort of magic pathway to wealth, either. If by some weird turn of events I suddenly came into possession of a 20-ton press, it isn't going to do me any good, and just about my only avenue to producing money from it is to sell it to some entity that does know what to do with it. A great deal of "capital" in the industrial world is relationships, organization, and the ability to apply human capital. Simplifying that to "physical goods" leads to weak thinking and bad policy.
  - geebee 11y ago
    There is certainly an ambiguity in the word capital. We talk about intellectual capital, or human capital, or cultural capital. However, there is also a kind of discussion about "capital" and "labor" where a more narrow definition of capital is in play. This is interesting, in terms of debate. Where we're talking about "means of production", refuting the claim that workers don't have "capital" by referring to the broader use of the term capital does dip a toe into the fallacy of ambiguity. However, as a stand alone point, a related argument stating that the workers are more powerful than you'd think due to human capital they hold, yeah, I think it's a reasonable thing to point out.
- deleted 11y ago
  [deleted]
- littletimmy 11y ago
  Even if this is a part of capital, it is so less in worth compared to land or investment capital that it is meaningless.
merpnderp 11y ago
I bought a house from a newly minted millionaire who had decided it was time to spend his new money on a bigger home. He had been an electrician who heard a buddy of his complaining about a new DOT regulation on semi's hauling oil pipe that required pipe restraints that no one had. He looked into it, toyed around with a prototype, went back to votec to machine shop school. Made his prototype and then patented it. Then secured some financing for a tiny machine shop where him and a few buddies started cranking out this bracket for pipe hauling companies. He was lucky in hearing about the need for the bracket at the right time. But he was not lucky in being able to go to votec or to secure a minor loan for the machine shop. Everyone else around him could have done that.
- s73v3r 11y ago
  How do you go back to votec when you're working two jobs to make ends meet?
  - enraged_camel 11y ago
    Not only that, but in the service industry, which employs an ever growing number of people every year (especially new grads), hours change very often. You might get a call in the morning from the restaurant manager saying you need to cover for someone else that evening. Can't make it? That's too bad, don't bother coming into work again - you're fired for being "unreliable." I'd go out on a limb and suggest that most people on HN have never been in situations like that, where losing a minimum-wage job meant not being able to pay rent and ending up homeless. That's why success stories like the one parent told are common here.
    - kom107 11y ago
      Hello. I have. I had no college degree. I was a drop-out. I worked as a line cook, for $9.70/hr (no tips). No economic help from my family. $9.70/hr. Had my electric turned off a few times. Phone turned off regularly. Water turned off. No gas for a northeast winter. Decided I was sick of it. Went back to school, took out some loans, but worked my ASS off, trying to get as many hours as possible so as to take out as few loans as possible. Kept communication open with my bosses and with my professors: I'm not making shit, I have to keep this job, but I want to make a better life for myself. It was hard. Hardest thing I've ever done. Realized that I couldn't rely on the cook income, so I started a side business JUST IN CASE they decided to fire me (building websites, took one class that had a week long section on HTML in college). Hustled. Replaced my income. Kept the two jobs, took a full course load. Awful. Hated my life, always tired. I graduated with $10,000 in debt from my bachelors and a post-bacc certificate program. Could have been a lot more, but I saw what happened if I went down that route. But you know what? I did it. It is possible. I am not a millionaire, but I have a great job, and am working on launching another company, so that I and my family can have an even better life. Everything we put in front of ourselves is an excuse. It IS possible. If I would have lost my job, I would have found a new one. Kids add difficulty to the situation (trust me, I know), but it is still possible.

by zajd 11y ago

jerf 11y ago

Learning a new skill or trade is capital. Capital is not just hard equipment. To the extent that was an acceptable approximation in the 20th century, it's less so today. To forstall the next likely objection, no, of course it is not the only form of capital. And "less so" != "completely the opposite of". And further, obviously, learning a trade isn't millions and millions of dollars worth of capital, nor does it instantly catapault you into the leagues of the wealthy, just because you learned how to fix plumbing or write code. And it obviously isn't liquid. But it is a form of capital. If you don't understand this, you can't understand unions. If labor doesn't have this capital, then unions can't work, because if labor really are just interchangable cogs that bring nothing but mere clock time to the equation, then labor has no bargaining position whatsoever. Unions only work because labor has this illiquid capital to bargain with. (There are some obvious further elaborations on this theme, such as the way the capital gets devalued by increasing the supply by globalization, and the continuous importation of cheap labor via illegal immigration. IMHO there's a certain amount of contradiction in being shocked at how labor is devalued in the market place and being pro-"open borders". It may not be the only cause and effect, but it's certainly involved.)

zajd 11y ago
I never said capital was simply hard equipment, but I'd like to hear what your definition of capital is that "learning a new skill" falls under that? I mean, we're talking economics here so there's a level of interpretation for definitions, but I've never heard of someone claiming that skills are capital. It feels like you're going with the "Everything is capital" route, which devalues the word in the first place.
- matwood 11y ago
  Human capital is a standard economic term. https://en.wikipedia.org/wiki/Human_capital#Background https://en.wikipedia.org/wiki/Human_capital#Background The improved dexterity of a workman may be considered in the same light as a machine or instrument of trade which facilitates and abridges labor
- hderms 11y ago
  He's using the notion of "human capital" which I think is clearly different enough from ordinary capital so as to deserve a different term. Human capital can beget ordinary capital if someone works hard for many years, saving their money and reinvesting it, but your average office worker is no more a 'capitalist' than a temporarily homeless man looking for work. Human capital seems differentiated by the fact that it ultimately is traded on the market for wages and generally doesn't translate into any kind of meaningful ownership of the fruits of capital.
  - jerf 11y ago
    "He's using the notion of "human capital" which I think is clearly different enough from ordinary capital so as to deserve a different term" Sort of yes, sort of no. It's important to understand that "physical capital" isn't some sort of magic pathway to wealth, either. If by some weird turn of events I suddenly came into possession of a 20-ton press, it isn't going to do me any good, and just about my only avenue to producing money from it is to sell it to some entity that does know what to do with it. A great deal of "capital" in the industrial world is relationships, organization, and the ability to apply human capital. Simplifying that to "physical goods" leads to weak thinking and bad policy.
- geebee 11y ago
  There is certainly an ambiguity in the word capital. We talk about intellectual capital, or human capital, or cultural capital. However, there is also a kind of discussion about "capital" and "labor" where a more narrow definition of capital is in play. This is interesting, in terms of debate. Where we're talking about "means of production", refuting the claim that workers don't have "capital" by referring to the broader use of the term capital does dip a toe into the fallacy of ambiguity. However, as a stand alone point, a related argument stating that the workers are more powerful than you'd think due to human capital they hold, yeah, I think it's a reasonable thing to point out.
deleted 11y ago
[deleted]
littletimmy 11y ago
Even if this is a part of capital, it is so less in worth compared to land or investment capital that it is meaningless.

merpnderp 11y ago

I bought a house from a newly minted millionaire who had decided it was time to spend his new money on a bigger home. He had been an electrician who heard a buddy of his complaining about a new DOT regulation on semi's hauling oil pipe that required pipe restraints that no one had. He looked into it, toyed around with a prototype, went back to votec to machine shop school. Made his prototype and then patented it. Then secured some financing for a tiny machine shop where him and a few buddies started cranking out this bracket for pipe hauling companies. He was lucky in hearing about the need for the bracket at the right time. But he was not lucky in being able to go to votec or to secure a minor loan for the machine shop. Everyone else around him could have done that.

s73v3r 11y ago
How do you go back to votec when you're working two jobs to make ends meet?
- enraged_camel 11y ago
  Not only that, but in the service industry, which employs an ever growing number of people every year (especially new grads), hours change very often. You might get a call in the morning from the restaurant manager saying you need to cover for someone else that evening. Can't make it? That's too bad, don't bother coming into work again - you're fired for being "unreliable." I'd go out on a limb and suggest that most people on HN have never been in situations like that, where losing a minimum-wage job meant not being able to pay rent and ending up homeless. That's why success stories like the one parent told are common here.
  - kom107 11y ago
    Hello. I have. I had no college degree. I was a drop-out. I worked as a line cook, for $9.70/hr (no tips). No economic help from my family. $9.70/hr. Had my electric turned off a few times. Phone turned off regularly. Water turned off. No gas for a northeast winter. Decided I was sick of it. Went back to school, took out some loans, but worked my ASS off, trying to get as many hours as possible so as to take out as few loans as possible. Kept communication open with my bosses and with my professors: I'm not making shit, I have to keep this job, but I want to make a better life for myself. It was hard. Hardest thing I've ever done. Realized that I couldn't rely on the cook income, so I started a side business JUST IN CASE they decided to fire me (building websites, took one class that had a week long section on HTML in college). Hustled. Replaced my income. Kept the two jobs, took a full course load. Awful. Hated my life, always tired. I graduated with $10,000 in debt from my bachelors and a post-bacc certificate program. Could have been a lot more, but I saw what happened if I went down that route. But you know what? I did it. It is possible. I am not a millionaire, but I have a great job, and am working on launching another company, so that I and my family can have an even better life. Everything we put in front of ourselves is an excuse. It IS possible. If I would have lost my job, I would have found a new one. Kids add difficulty to the situation (trust me, I know), but it is still possible.