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Adages only go so far. "A day's work for a day's pay." "To each what he deserves." Every economic function involves risk, to both labor and to capital. There's
by scarmig 13y ago
Adages only go so far. "A day's work for a day's pay." "To each what he deserves."
Every economic function involves risk, to both labor and to capital. There's no reason, however, that the majority of the value should go to capital. The economics of relative scarcity, possibly. But that's not the situation here: market forces didn't decide compensation packages and the return to capital, here. Collusion did, which is a distortion of the market from a situation of perfect competition.