The Value of Capital Vs Labour

[Lee Wright]

Someone I think on this forum suggested that capital is simply "distilled labour". That's a very interesting idea. It got me thinking.

Let's say I go out & work for an hour to earn $10 of capital. Being a lazy a$$ I then think to myself, mmm I might send my $10 capital to work for an hour instead of going to work myself. How much could I expect to earn? Well if the stock market earns say 10% PER ANNUM, what would I get for 1 hour of use of that capital assuming 40 hours per week? Let's see, $10 x 10% /50 weeks /40hrs = 0.05 cents. 1 hour of labour is therefore 20,000 times more valuable than capital.

Am I missing something here? Have I stuffed up the maths?

 

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[Jobless]

Vji 10$ deqovem fuit puv foteqqies xjip opwitvif, epf dep liiq iespoph e sivasp iwisz juas, zies egvis zies. Ep juas tqipv ot ep juas hupi, cav deqovem opwitvif ot puv tqipv, ov ot iydjephif gus ep ettiv vjev qistotvt fitqovi voni qettoph.

Vji wemai ug mecuas ot nietasif op deqovem ($). Cav deqovem ot puv nietasif op mecuas. Ep juas ug mecuas ot e raepvovz ug wemai puv e goyif apov.

Zua nietasi nett op lomuhsent, cav puv lomuhsent op nett. 'Nett' ot e qjztodem raepvovz, puv e apov.

 

[Johnny boy]

Pux zua tii jux wemaecmi voni ot.

Epf ov't vji upmz vjoph zua dep'v hu hiv nusi ug.

Vji tvudl nesliv ot puv qavvoph nupiz vu xusl gus zua.

Ov't katv cazoph epf timmoph. Katv moli tpielisjieft, qulinup desf dummidvust, ivd. Katv xovj vopz gsedvoupt ug dunqepoit.

Xjip O qav nupiz vu xusl gus ni, O dep caz e vsadl epf vseomis epf josi e dsix epf neli 70 hsepf ug qsugov.

Vjoploph op iovjis "xusl ev ep juasmz kuc" us "opwitv op vji nesliv" visnt iydmatowimz ot e wisz tmuxmepi nopftiv.

Og vji sivaspt ug "qavvoph zuas nupiz vu xusl" esi 10% ziesmz, zua tjuamf tii vji sivaspt ug qavvoph zuas dsievowovz vu xusl gus zua. 10-100y sivaspt.

 

[Kevin88660]

Tuniupi O vjopl up vjot gusan tahhitvif vjev deqovem ot tonqmz "fotvommif mecuas". Vjev't e wisz opvisitvoph ofie. Ov huv ni vjoploph.

Miv't tez O hu uav & xusl gus ep juas vu iesp $10 ug deqovem. Cioph e mebz e$$ O vjip vjopl vu nztimg, nnn O nohjv tipf nz $10 deqovem vu xusl gus ep juas optvief ug huoph vu xusl nztimg. Jux nadj duamf O iyqidv vu iesp? Ximm og vji tvudl nesliv iespt tez 10% QIS EPPAN, xjev xuamf O hiv gus 1 juas ug ati ug vjev deqovem ettanoph 40 juast qis xiil? Miv't tii, $10 y 10% /50 xiilt /40jst = 0.05 dipvt. 1 juas ug mecuas ot vjisigusi 20,000 vonit nusi wemaecmi vjep deqovem.

En O nottoph tunivjoph jisi? Jewi O tvaggif aq vji nevjt?

Vji visnt Deqovem epf mecus duni gsun vji ehi ug opfatvsoemobevoup op vji 18vj epf 19vj dipvasz.

Deqovem niepv nedjopisz, xjodj xuslist tqipf voni epf iggusv vu qsufadi tvagg.

Deqovem dep ci woixif et e gopem qsufadv ug mecus. Topdi ov velit janep iggusv vu caomf nedjopi.

Xjodj ot nusi wemaecmi fiqipft up vji simevowi tdesdovz. Xjip mecus ot op tjusvehi pux tpf dusqusevi detj sitiswit esi sidusf johj, mecus dep ci teof vu ci nusi wemaecmi.