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You're argument assumes that all cost is labor which is obviously not true. The higher a percentage of cost that is labor, the better of most people are, since

You're argument assumes that all cost is labor which is obviously not true. The higher a percentage of cost that is labor, the better of most people are, since they work. To put it simply, if everyone in the service sector made double, prices wouldn't double. The only people who would suffer are people who make most of their money through capital gains. Even many of them would benefit to have a healthier economy, margins can be replaced by volume. You would also see a spike in prices for limited resources that many can't afford, but innovation usually solves that problem. If you want a good empirical data on this, see the institution of minimum wage. Contrary to the naysayers predictions, there was little inflation and overall, a better economy.

avz 11y ago
The argument doesn't really make assumptions about how you contribute to a business. Investors fighting for higher capital gains also drive up the costs for the business they fund. Higher ROI is how an investor increases her wealth relative to other members of society. Lower capital gains make the society richer overall. If you invest your savings in a space business and genuinely care about it, then the return you demand becomes the cost of space exploration. Identical dilemma to that of the worker. The class warfare between owners of capital and workers is essentially the same mechanics but taken between two specially chosen groups. In general, each individual and each group seeks to increase their share relative to others (whether you call it income or capital gains). Costs going down is how we all get richer as a society (the costs including both paychecks and capital gains).
- doki_pen 11y ago
  I don't think workers, in the united States at least, are fighting for their share. Marketing efforts by the capital side have rendered the working side a helpless lamb ready for the slaughter. But if a symbiotic relationship becomes parasitic, sometimes the host is destroyed, taking the parasite with it.
- doki_pen 11y ago
  The capital class is a much much smaller class. In any valid form of democracy, they should never win the way they are winning now.

avz 11y ago

The argument doesn't really make assumptions about how you contribute to a business. Investors fighting for higher capital gains also drive up the costs for the business they fund. Higher ROI is how an investor increases her wealth relative to other members of society. Lower capital gains make the society richer overall. If you invest your savings in a space business and genuinely care about it, then the return you demand becomes the cost of space exploration. Identical dilemma to that of the worker. The class warfare between owners of capital and workers is essentially the same mechanics but taken between two specially chosen groups. In general, each individual and each group seeks to increase their share relative to others (whether you call it income or capital gains). Costs going down is how we all get richer as a society (the costs including both paychecks and capital gains).

doki_pen 11y ago
I don't think workers, in the united States at least, are fighting for their share. Marketing efforts by the capital side have rendered the working side a helpless lamb ready for the slaughter. But if a symbiotic relationship becomes parasitic, sometimes the host is destroyed, taking the parasite with it.
doki_pen 11y ago
The capital class is a much much smaller class. In any valid form of democracy, they should never win the way they are winning now.