- What is the distinction that Reading 4.3 makes between owners and employees? Give an example of each.
The distinction that the Reading 43 makes between owners and employee is that their relationship is based off wealth and labor. Owners are individuals who own production such as businesses, stocks, real estate, or other investments. These owners income comes from rent, profits, and investments. Employees, on the other hand, are individuals who work for their wage and do not own capital. There wages are a portion of wealth, while the remaining usually goes to owners who they pay rent, mortgage, or bills to. For example, Elon musk is the owner of Tesla and lives off the wealth generated by his employees. An employee working at Tesla only receives a wage while the company and own profits from the employees labor.
2. How do you understand the quote by Adam Smith on pg. 28? What is it saying about labor?
“Labor… is alone the ultimate and real standard by which the value of all commodities can an all time and places be estimated and compared. it I their real price; money is there nominal price only.”
The quote by Smith on pg. 28 is saying that labor is the source to economic value. Without the hard work it takes to produce something, it doesn’t hold much value because the amount of worth of something is determined based on the labor that was involved.
3. What are your thoughts on the main argument of Reading 4.4 that class is NOT an identity?
My thoughts on class is not an identity based on Reading 4.4, is that class is about power and its not just a social identity. The author explains how class determines the position of an individual in the economic system and shapes their access to power and resources. I do agree with this argument because someone’s structural position in capitalism dictates their power and economic dependence. For example, capitalist have power within the economy because it depends on them for jobs and investments. This also leads to governments to prioritize the capitalists interests for the sake of the economy.
4. How do you understand the argument Reading 4.4. makes when stating that “class structures are built around a close form of dependency”? What is this close form of dependency, and can you think of an example?
The close form of dependency discusses then relationship between owners and workers For example, workers depend on capitalist for wages which are need for their basic needs such as housing, food, etc. Capitalist on the other hand, depends on workers to generate their profit. Without workers, capitalist won’t be able to make profit because there won’t be efficient production within their company.
