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> "Why is it that once the owner has recovered their initial investment that they should then continue to retain the surplus generated by the worker?" The capi
by mullingitover 14y ago
> "Why is it that once the owner has recovered their initial investment that they should then continue to retain the surplus generated by the worker?"
The capitalist's claim on the profit comes from the fact that the capitalist put his own capital at risk. It's pure risk premium: he (or she, of course) could've lost it all if things went south. The workers, from the start, had a guaranteed income in exchange for their irreplaceable moments of life on this planet. If the workers want a share of the profits, they are free to raise their own capital and buy shares in the company (or start their own!) just like the capitalist did.
Above all the mechanics of capitalism, however, people are also free to pursue their own self-actualization. For some people that involves helping their community, and for some capitalists that community happens to be the workers who helped create their thriving business. At a certain age, having extra capital to be buried with doesn't make one feel as good as philanthropy does.
- shaunxcode 14y agoSo you genuinely feel that this initial risk has a value of infinity? How is that mathematically viable or honest?
- mullingitover 14y agoHow is it mathematically viable or honest to assume that a company will have infinite profits? There's an extremely high probability when you start a business that you will fail and lose everything.