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> If the workers don't show up to create value for him and for the company, they don't get paid. They're creating some value by packing boxes, that contribution
by pitaj 5y ago
> If the workers don't show up to create value for him and for the company, they don't get paid. They're creating some value by packing boxes, that contribution might be worth $25/hr, but they've only been able to negotiate $18/hr of that value creation. They're probably handling goods worth tens of thousands of dollars per hour where that wealth is exchanged between end consumers and manufacturers, but they're not charging a commission to the buyers based on a percentage of that transaction.
Or their contribution might be worth $16/hr. Value is subjective. If they agree to work for $18/hr, then that work is worth at the most $18/hr for them. They do charge a commission to the buyers by proxy. Sure the company does some averaging across time, which is valuable to workers and both sellers and buyers on the marketplace. It makes it much easier for everyone involved. Do you really think workers want to get paid based on commissions? Do you think someone moving a box containing something priced $1000 deserves to be paid more than someone moving an identical box containing something priced $1?
> The company itself is performing things that are valuable, but he's not doing those actions personally. Of the three types of wealth acquisition, making money from an ownership position is extraction.
Extraction from what? What does extraction even mean? This applies to any investment or holding any stocks. Investment benefits the company (and I guess the workers and consumers by proxy) by providing resources for companies to develop. It's a two-way thing: investor takes on risk by giving money to company, company promises to give investor some amount of profit in the future. If anything, investment is creation of wealth from risk.
- vicda 5y agoExtraction from the companies net value. If they didn't take a salary, bonuses, or dividends the company would still have that value on their books. If you're just holding onto stocks with no dividend you're not extracting anything.