The source of wealth in capitalist economies is typically considered to be the ownership and control of productive resources, such as land, labor, and capital. These resources are used to produce goods and services that are sold in markets, and the profits generated from these sales accrue to the owners of the resources. In this system, capitalists, who own and control the means of production, are often considered to be the primary source of wealth, while workers, who sell their labor in exchange for wages, are considered to be a secondary source of wealth. This perspective is often criticized by socialists and others who argue that workers are the true source of wealth, as they are the ones who actually produce goods and services.
Without capital, however, there can be no workers. Without the resources capital mobilises, it would not be possible for workers to produce goods and services on the scale that is required to meet the demands of the market. Capital also enables businesses to invest in new technologies, which can increase productivity and efficiency, and to expand their operations, which can create new jobs. In this way, capital can be seen as a necessary component of the economy that enables workers to be productive and earn a living.
Indeed, increased deployment of capital in businesses and the productivity gains these yield are what account for the increases in wages that usually go hand in hand with industrialisation. The idea that workers are society’s “heroes” can only go so far. The real heroes are people of vision who imagine business ventures and put capital at risk (i.e. invest it) to build business enterprises. In short, capitalists deserve their wealth because they have taken risks, invested in businesses, and created jobs, which have helped to grow the economy and improve the standard of living for many people. Capitalists’ wealth is a result of their hard work, ingenuity, and entrepreneurial spirit.
|SUPPORT INDEPENDENT SOCIAL COMMENTARY!|
Subscribe to our Substack community GRP Insider to receive by email our in-depth free weekly newsletter. Opt into a paid subscription and you'll get premium insider briefs and insights from us.
Subscribe to our Substack newsletter, GRP Insider!
Communists will always argue that capitalists’ wealth is the result of systemic advantages and inherited privilege, rather than their own individual merit. They will insist that the economic system is often rigged in favor of the wealthy and powerful, and that capitalists have often benefitted from government policies and regulations that have helped to protect their interests at the expense of the working class. But the challenge to them is to prove that the alternative they propose — rigging the system in favour of their so called “proletariat” — is a superior option.
benign0 is the Webmaster of GetRealPhilippines.com.