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have you ever thought where return on investment/capital comes from? You can hire 100 people to make 100,000 needles a day by hand tools or instead build a $20
by kashkhan 9y ago
have you ever thought where return on investment/capital comes from?
You can hire 100 people to make 100,000 needles a day by hand tools or instead build a $200,000 plant that make 10 million needles a day with three guys operating the machines. In both cases the profit goes to the plant owner, while in the second the cost of labor will be less than 3% of the receipts.
- gozur88 9y ago3%? No. That's not even close. And you're leaving out indirect labor - people got paid to build everything you buy.
- kashkhan 9y agohow much labor does capital need to produce returns? the wages in economy are well documented. as well as returns on capital. Actual data matters. Don't take my word for it. read up an actual economist. http://voxeu.org/article/reducing-inequality-deconcentrating-capital#.WVnrmjhD6hQ.twitter http://voxeu.org/article/reducing-inequality-deconcentrating... The rich aren't rich because they put in more labor and got more salaries.
- gozur88 9y agoThis doesn't support your point at all. It's only tangentially related.