Mises: Wage Earners vs Capitalists (1961)

Mises responding to a question put to him back in 1961 about if there's truly a difference between the capitalists and the workers.

In the market economy, profits go to those who succeed in bringing the most value to society. The profits reinvested, improve the lives of the wage earner through a rise in marginal productivity, causes rises in real wages. The capital of the capitalist not only benefits himself, but those working in the plant as well as the consumers in the market.

The typical american saver owns insurance policies and has bank accounts - which both lend to business. The principal and interest of their savings are safe only so far as the american free enterprise is in good shape, and prospering. Good profits, and high real wages go hand in hand.

Category:

News & Politics

Tags:

• mises
• austrian economics
• capitalist
• wage earners
• kendesilva
• ken de silva