Labor is only one of many sources of value. Some other sources are technology, machinery, relationships, capital, education, experience, reputation, and effici

Labor is only one of many sources of value. Some other sources are technology, machinery, relationships, capital, education, experience, reputation, and efficient organization of resources. A business, by necessity, brings much more to table than the mere sum of the labor. The managerial class is paid to efficiently organize human resources (hiring, motivating, growing, conflict resolution, scheduling, removing obstacles to labor) and non-human resources (budgeting, purchasing, etc). The owner is paid for making sure a company is aligned with a vision, investing resources, securing funding, assuming liability, and taking risks. Labor is worth very little without the above mentioned things. This is why people often work for others rather than themselves.