- Distinction between Owners and Employees:
- Owners are the individuals or families who own the wealth of society, living most of investments such as bonds, stocks, rent, mineral royalties and property income. They belong to the corporate owning class and their wealth is exceptionally large and it comes from the labor of other people.
- Employees are the ones who are exploited by the Owners and live out of wages, these can be considered factory workers, managers, doctors, lawyers, traders, CEOs. The Employee with her/his labor finishes the product for the Owner and gets a substantially small percentage in comparison to the sell and profits of the Owner.
In the gaming industry, the Owners of Sony made $18.19 billion in 2019, while paying their factory workers $25000 a year and their programmers and salespeople about $120000 (median wage) a year, still being an incredibly small percentage of the total profit.
2. Smith is saying that labor itself is the action that gives true value to all products or services created, and without it there would be no money at all.
3. In the eyes of socialists, class is not an identity, in fact, is seen as structural positions where all actions taken are based in an interdependency between the capital and the employees, where each one, is following a logical plan to maintain that position. Capitalists compete against other Capitalists in markets where the one who exploits the most out of their employees for profit wins, on the other hand workers must compete against other workers convincing capitalists just for the sake of getting a job and being able to eat. So, for socialists, class, is more about interests and actions rather than a common status.
In a more simplified way, liberals think class is an identity in politics because, they say your class is linked to the advantages and disadvantages you were born in, this being a combination of wealth, income and education and sometimes taking account things like “Cultural Capital”.
I honestly don’t believe that class is an identity and my example is two short questions, if you are born upper class, and you are raised in an environment where everybody has the same advantages as you, and then for any reason you lose all your wealth, income and you can’t exercise the degree you obtained with your education, does that make you a different class that you have to identify with?, what if you were the one who reached the life of a capitalist, in an old stage of your life, is the lower class you identity?
4. The close form of dependency is that Owners depend on employees to work for them to create them wealth, and employees need the working place from the owners to sell their labor to be able to live.
An example could be the coal mining towns, where employees who know how to mine sell their labor to the mine Owner, but, without miners, the owner of the mine would not be able to make money from it, he would have to do it himself and that’s not what capitalists do.