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> Since the returns on capital outpace the returns on labor, in the long run wealth accumulates with capital and reinforces inequality. Also, capital-derived i
by yourapostasy 10y ago
> Since the returns on capital outpace the returns on labor, in the long run wealth accumulates with capital and reinforces inequality.
Also, capital-derived income scales far more than labor-derived income, with far lower overhead. This isn't just in the physical domain, but also the time domain. This presents interesting tax and industrial policy questions on whether or not to treat large-scale capital-intensive organizations the same as labor-intensive organizations.