Capital is the part of the wealth of a country which is employed in production that is necessary to give effect to labor. Developing countries are exerting all their best efforts to attract foreign investors. However, there are investors who are not paying what is due of them. Given that there there are those who are paid below the minimum wage, what will happen to those small industries and enterprises owned by the locals? For sure, not all of them can compete in the market.
If different industries apply different amounts of capital per laborer, then the rate of profit will also differ across industries. What does this mean? The "labor-embodied" theory of value would only work if the degree of capital-intensity was the same across all sectors?
If the natural price of labor depends on the price of food, necessaries, and conveniences required for the support of the laborer and his family, then why is it that a manager has a different wage from an ordinary employee?
If different industries apply different amounts of capital per laborer, then the rate of profit will also differ across industries. What does this mean? The "labor-embodied" theory of value would only work if the degree of capital-intensity was the same across all sectors?
If the natural price of labor depends on the price of food, necessaries, and conveniences required for the support of the laborer and his family, then why is it that a manager has a different wage from an ordinary employee?
The problem in some countries is that capital is not utilized well because of corruption.
ReplyDeletethis is reality. everyone can receive an equal compensation granting that countries will be dissolved -- which will never happen.
ReplyDelete--Lisa King
Unfortunately some countries fail to effectively utilize capital. They end up being corrupt which is a great problem.
ReplyDeleteits because more job is expected from a manager than that of the ordinary employee.
ReplyDelete