RadioRaheem84
8th January 2010, 02:58
Capitalists abstain from current consumption and use savings to invest in capital goods and high order production all in an effort to expand and import goods and services. Interest income reflects this waiting factor in all economic life. Capitalists have to wait to be paid unlike hired workers. They don't have to wait or worry about accounts receivable or accounts payable. They don't have to worry about investment debt or changing markets, therefore the hired workers are rightly paid their discounted product or value, while interest income and profits are justifiably returned to the capitalist. The market rewards additional risk by compensating the capitalist with a significant portion of the products value via profit and interest. Wages are justified in that workers take little to no risk involved in running said company.