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Part of the profits come from employment of capital. Almost no company relies solely on labor, they typically rely on both labor and capital (machines, building
by badpun 8mo ago
Part of the profits come from employment of capital. Almost no company relies solely on labor, they typically rely on both labor and capital (machines, buildings etc.). Owner of capital wants compensation for their investments, and he gets it via profits. Meanwhile, workers want compensation for their work, and they get it via wages. The exact split between compensation for capital and for work is a subject of negotiation (and often laws).
- keybored 8mo agoThe capitalist has more assets and commodities than just the labor commodities? So what?