I periodically explain that labor and capital are the two factors of production and that our prosperity depends on how efficiently they are allocated.
But I probably don’t spend enough time highlighting how they are complementary, meaning that workers and capitalists both benefit when the two factors are combined. Simply stated, workers become more productive and earn more when investors buy machines and improve technology.
In other words, the Marxists and socialists are wrong when they argue that workers and capitalists are enemies. Heck, look around the world and compare the prosperity of workers in market-oriented nations with the deprivation of workers in statist economies.
This becomes painfully clear when you read this Wall Street Journalstory on the statist hellhole of Venezuela.
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