Zingu
2nd January 2006, 06:52
I've been going on and off with this Liberatarian I know, I was talking to him about Crisis Theory, and I recently got this responce, I already know some rebuttals I can talk about, but I need some clarfication, about how in an easy, logical way I can really drive forth that ALL wealth is created off the exploitation of labor, as you will see below:
(He also failed to address alot of points about Crisis Theory that I presented)
Hey ####, thanks for taking the time to put your thoughts to paper. I hope you have enjoyed your break.
Some thoughts of my own. Regarding labor as the source of all wealth. Let's first agree that any labor that does not produce something of value is a waste of labor. I could employ thousands of people at a cost of millions of dollars and have nothing of value to show for it, and no wealth. Of course, the worker would have received pay, until the company went bankrupt. But the fact that labor worked really hard to produce a valuable product or service doesn't equate to a valuable product or service. Who holds the risk? Not the worker. They received compensation for their labor.
Wealth is created by creating value. How did Bill Gates come to his billions of dollars? By exploiting labor? You can rest assured that the MicroSoft labor pool has been very happily compensated. In fact most have become extremely wealthy themselves. Did Bill Gates come to his riches on the backs of the consumer? On the contrary, Bill Gates and MicroSoft have made it possible for millions of people around the world to increase their productivity and create wealth of their own. I would not be in the business I am without the MicroSoft Access. The MS's database program has made it possible for me to run my business efficiently and profitably. It cost Bill Gates millions of dollars to create and maintain MS Access - with no guarantee that anyone was going to buy it. In the end, I am able to use MS Access to create my own wealth at an extreemly small fraction of the cost Bill Gates to develope.
On the other hand, other software companies that failed to gain enough market share in the database market have ceased to exist. Has labor ever given back a penny to a capitalist when the company failed?
And who is the capitalist? The lines are quite blurry. Public companies are owned by the public. Most of whom make up the labor force. When Bill Gates worked for MicroSoft, was he an exploited worker? Was the public that owned MS stock exploiting his labor?
Rather than capitalist and labor, we should consider property rights. The capitalist (those who choose to invest and risk in a business venture) holds the property of money. The worker hold the property of his labor. In free market capitalism the worker freely chooses to exchange his or her labor for compensation (usually in the form of money, our universally accepted symbol of value.) Both exchange property for property - in a non-zero-sum exchange. Both parties are wealthier after the transaction than before- otherwise they would not have entered the exchange. As a capitalist investor, I have decided that I value the product of someone else's labor more than a given sum of money (a wage). The worker has decided that they value the wage more than the product of their labor. (Of course, they could have stayed home and used their labor and keep its end product. However, by their actions they have stated that the believe the wage they work for is of greater value.)
got to run for now. Let's talk soon.
(He also failed to address alot of points about Crisis Theory that I presented)
Hey ####, thanks for taking the time to put your thoughts to paper. I hope you have enjoyed your break.
Some thoughts of my own. Regarding labor as the source of all wealth. Let's first agree that any labor that does not produce something of value is a waste of labor. I could employ thousands of people at a cost of millions of dollars and have nothing of value to show for it, and no wealth. Of course, the worker would have received pay, until the company went bankrupt. But the fact that labor worked really hard to produce a valuable product or service doesn't equate to a valuable product or service. Who holds the risk? Not the worker. They received compensation for their labor.
Wealth is created by creating value. How did Bill Gates come to his billions of dollars? By exploiting labor? You can rest assured that the MicroSoft labor pool has been very happily compensated. In fact most have become extremely wealthy themselves. Did Bill Gates come to his riches on the backs of the consumer? On the contrary, Bill Gates and MicroSoft have made it possible for millions of people around the world to increase their productivity and create wealth of their own. I would not be in the business I am without the MicroSoft Access. The MS's database program has made it possible for me to run my business efficiently and profitably. It cost Bill Gates millions of dollars to create and maintain MS Access - with no guarantee that anyone was going to buy it. In the end, I am able to use MS Access to create my own wealth at an extreemly small fraction of the cost Bill Gates to develope.
On the other hand, other software companies that failed to gain enough market share in the database market have ceased to exist. Has labor ever given back a penny to a capitalist when the company failed?
And who is the capitalist? The lines are quite blurry. Public companies are owned by the public. Most of whom make up the labor force. When Bill Gates worked for MicroSoft, was he an exploited worker? Was the public that owned MS stock exploiting his labor?
Rather than capitalist and labor, we should consider property rights. The capitalist (those who choose to invest and risk in a business venture) holds the property of money. The worker hold the property of his labor. In free market capitalism the worker freely chooses to exchange his or her labor for compensation (usually in the form of money, our universally accepted symbol of value.) Both exchange property for property - in a non-zero-sum exchange. Both parties are wealthier after the transaction than before- otherwise they would not have entered the exchange. As a capitalist investor, I have decided that I value the product of someone else's labor more than a given sum of money (a wage). The worker has decided that they value the wage more than the product of their labor. (Of course, they could have stayed home and used their labor and keep its end product. However, by their actions they have stated that the believe the wage they work for is of greater value.)
got to run for now. Let's talk soon.