The article you referenced explains (emphasis added)…
While money itself may be construed as capital, capital is more often associated with cash that is being put to work for productive or investment purposes.
I think my time is better spent now supplying my capital to a local drinking establishment.
The act of investment is purchasing (or exchanging) capital using cash or other assets.
A business may acquire funding from investment, but in such a case the investor is trading cash for equity, bonds, or some other investment asset representing the present or future value of the company, or generated by the company. The investor is not supplying capital, but rather purchasing capital (or trading capital).
The idea that the investor is supplying capital to the company is only a metaphor.
Someone may lose money from an investment, but most capital is owned by immensely wealthy individuals, whose situation is vastly removed from that of ordinary workers, who actually do face the risk of losing their only home or their only car.
Even small businesses are owned by individuals who have chosen to become business owners in order to profit from others’ work. Any risk they assume is through an attempt to enrich themselves from gains not shared with workers. By not sharing their gains with those who are working to create them, business owners, large or small, are not helping workers, but rather preventing workers from advancing.
The gains are shared with the workers; it is called a paycheck, insurance, etc… The workers do not share the losses. When I had my first business, my house was at risk if I did not repay the loan. The worker lost nothing if it failed. They would just go on to the next job. When I gave them the company, they had as much knowledge as you did and bankrupted it in three months. They didn’t get the basics of accounting or finance either.
You don’t seem to grasp the basics. You seem to think the average business owner was given the company and has nothing at risk, which is purely mythical thinking. That is why our tax code heavily rewards people who own companies that create jobs. It is because they’re taking a risk which rewards the community.
Even on a larger scale, if Twitter does not do well, Elon loses billions. The workers don’t lose anything. If the company does well, the workers can gain millions in their stock grants.
It isn’t the company preventing you from advancing. It is your mythical thinking of how things work. You are free to go start your own company and pay the workers their real value. Nothing stops you from doing that. You will be BK in very short order as you will have no reserves, if something breaks you will have no cash to repair it, you won’t even be able to pay your PO at the end of the month but you are free to give it a swing.
If you chose to use your house as collateral in order for the opportunity to enrich yourself, then no one owes you any gratitude. You are not a hero. You acted in your own interests, not for helping others.
If workers provided labor, and you only paid them wages, then you profited from their labor, and prevented them from advancing by realizing the full value of their labor.
The only reason your house was at risk was because the bank hoards capital, using lending as a device to augment its own wealth.
If capital were shared by everyone, then all the problems you describe would not occur. No one would lose houses or cars, no one would be a tens of millions of times richer than anyone else, and everyone would be paid fully for their labor, without distinction of owner versus worker.
Those who have the most wealth, the most capital, are not facing risk, compared to everyone else. Someone who has $10 billion in assets and loses $2 billions has not lost in the same way as a poor person who loses a car. The billionaire is completely insulated from the precarity faced by most of the population, because the billionaire privately controls the vast wealth of society. The losses suffered by the billionaire owe to the instability of the business and the business cycle, not to the trials of life.
Those who are most wealthy face the least risk, and in fact impose the genuine risk on everyone else.
If control over capital were shared, then no one would be precarious, nor need to use a home as collateral for a loan.
I simply observed that most of the capital is owned by a tiny cohort of society. Small businesses, especially businesses worth approximately the same as a house, comprise a relatively small valuation of capital (which is not the same as the number of businesses, or the number of jobs).
There is no reason why economic activity needs to be tied to someone risking becoming homeless. Such a relationship is a consequence of the system, the way that wealth is hoarded by the few and made available to the rest only under conditions that serve the private interest of the wealthy. A different system would not need to carry the same feature.
Ok. Capital is just cars and cash.
The article you referenced explains (emphasis added)…
I think my time is better spent now supplying my capital to a local drinking establishment.
Enjoy ranting.
Removed by mod
The act of investment is purchasing (or exchanging) capital using cash or other assets.
A business may acquire funding from investment, but in such a case the investor is trading cash for equity, bonds, or some other investment asset representing the present or future value of the company, or generated by the company. The investor is not supplying capital, but rather purchasing capital (or trading capital).
The idea that the investor is supplying capital to the company is only a metaphor.
Someone may lose money from an investment, but most capital is owned by immensely wealthy individuals, whose situation is vastly removed from that of ordinary workers, who actually do face the risk of losing their only home or their only car.
Even small businesses are owned by individuals who have chosen to become business owners in order to profit from others’ work. Any risk they assume is through an attempt to enrich themselves from gains not shared with workers. By not sharing their gains with those who are working to create them, business owners, large or small, are not helping workers, but rather preventing workers from advancing.
It isn’t a metaphor. It is how it works.
The gains are shared with the workers; it is called a paycheck, insurance, etc… The workers do not share the losses. When I had my first business, my house was at risk if I did not repay the loan. The worker lost nothing if it failed. They would just go on to the next job. When I gave them the company, they had as much knowledge as you did and bankrupted it in three months. They didn’t get the basics of accounting or finance either.
You don’t seem to grasp the basics. You seem to think the average business owner was given the company and has nothing at risk, which is purely mythical thinking. That is why our tax code heavily rewards people who own companies that create jobs. It is because they’re taking a risk which rewards the community.
Even on a larger scale, if Twitter does not do well, Elon loses billions. The workers don’t lose anything. If the company does well, the workers can gain millions in their stock grants.
It isn’t the company preventing you from advancing. It is your mythical thinking of how things work. You are free to go start your own company and pay the workers their real value. Nothing stops you from doing that. You will be BK in very short order as you will have no reserves, if something breaks you will have no cash to repair it, you won’t even be able to pay your PO at the end of the month but you are free to give it a swing.
If you chose to use your house as collateral in order for the opportunity to enrich yourself, then no one owes you any gratitude. You are not a hero. You acted in your own interests, not for helping others.
If workers provided labor, and you only paid them wages, then you profited from their labor, and prevented them from advancing by realizing the full value of their labor.
The only reason your house was at risk was because the bank hoards capital, using lending as a device to augment its own wealth.
If capital were shared by everyone, then all the problems you describe would not occur. No one would lose houses or cars, no one would be a tens of millions of times richer than anyone else, and everyone would be paid fully for their labor, without distinction of owner versus worker.
Removed by mod
You are not understanding.
The risk is artificial.
Those who have the most wealth, the most capital, are not facing risk, compared to everyone else. Someone who has $10 billion in assets and loses $2 billions has not lost in the same way as a poor person who loses a car. The billionaire is completely insulated from the precarity faced by most of the population, because the billionaire privately controls the vast wealth of society. The losses suffered by the billionaire owe to the instability of the business and the business cycle, not to the trials of life.
Those who are most wealthy face the least risk, and in fact impose the genuine risk on everyone else.
If control over capital were shared, then no one would be precarious, nor need to use a home as collateral for a loan.
Removed by mod
You are being incredibly dishonest.
You mentioned Elon Musk.
I simply observed that most of the capital is owned by a tiny cohort of society. Small businesses, especially businesses worth approximately the same as a house, comprise a relatively small valuation of capital (which is not the same as the number of businesses, or the number of jobs).
There is no reason why economic activity needs to be tied to someone risking becoming homeless. Such a relationship is a consequence of the system, the way that wealth is hoarded by the few and made available to the rest only under conditions that serve the private interest of the wealthy. A different system would not need to carry the same feature.