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Capital has been described as ... 

From the EBook of International Finance:

"... Capital has been described above as money put to certain purposes. This was done for the sake of clearness and because this definition fits in with the facts as they usually happen in these days. Economists define capital as wealth reserved for production, and we must always remember that money is only a claim for, or a right to, a certain amount of goods or a certain amount of other people's work. Money is only a title to wealth, because if I have a sovereign or a one-pound note in my pocket, I thereby have the power of buying a pound's worth of goods or of hiring a doctor to cure me or a parson to bury me or anybody else to do anything that I want, up to the buying power of that sovereign. This is the power that money carries with it. When the owner of this power, instead of exercising it in providing himself with luxuries or amusements, uses it by lending it to someone who wants to build a factory, and employ workers, then, because the owner of the money receives his rate of interest he is said to be exploiting labour, because, so it is alleged, the workers work and he, the capitalist, sits in idleness and lives on their labour.

And so, in fact, he does. But we have not yet found out how he got the money that he lent. That money can only have been got by work done or services rendered, for which other people were ready to pay. Capital, looked at from this point of view, is simply stored up work, and entitled to its reward just as much as the work done yesterday. The capitalist lives on the work of others, but he can only do so because he has wrought himself in days gone by or because someone else has wrought and handed on to him the fruits of his labour. ..."

Nice read - Here is the free eBook. Feel free to share this book by Mr. Hartley Withers with any eager learners you may bump into over the holidays?




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