1. Owners and employees, as differentiated in Reading 4.3, refer to the persons whose business roles are considered to making money.
Owners are the persons who own the business. They did not have to work in the business themselves but made money from the work of others. They own the factories, shops, or companies and profit from the labor of their employees.
Example of the owner: Picture someone who owns a clothing store. He sells the clothes but hires people to help sell and organize the store. Decisions as to what to sell, how to run the store, and profit-sharing are left to the owner.
Employees are, by contrast, the people who are working for the owners. They do not own the business and get paid for the amount of work they perform.
Example of an employee: The cashier in the clothing store. The cashier does not own the store and is paid on an hourly basis or salary for helping customers and making sales.
In brief, owners make a profit from the business and exercise control over it while employees operate the business for a wage.
2. The labor being discussed is the work people do to create value in everything that they use or buy. Without people working, whether they are building houses, making food, or building technologies, there wouldn’t be products and services at all. The worth of something is determined by the amount of work a person puts into its production.
For instance, any labor put into making the car would have given value; the car has value not only because of the materials that went into it but also because of the labor people put into assembling it.
And so, Adam Smith says labor is value-giving; absent of any work by people, there would be no wealth and no products.
3. Coming back to Reading 4.4, class is said to be more than an identity. By this, the inference is that how one views him- or herself or what label one uses to define him- or herself (such as, “I’m middle class”) should not define one’s class position in society. Instead, class constitutes a position in the economy.
Why class isn’t an identity: Class isn’t just something you decide to be or consider yourself to be. It’s a function of how you relate to work and wealth. For instance, all the claims to be “middle class” may have indeed been made under decent circumstances (having a decent job or home), but one may be economically in a lower class if one does not own a business, or does not have a great deal of money.
The author says, Therefore, that class is about (lack of) power and control over resources such as money businesses, and land. It is not about the way you see yourself, but about what you control within the gasping arms of society.
4. In Reading 4.4, the theory of class structures goes beyond mutual interdependence between worker and owner; rather, there is an economy of interdependence that serves the best interest of one over another. Jointly reliant on the functioning of the system, the owners maintain more power.
Interdependency: Workers depend on the owners to provide them with jobs and wages. Owners, on the other hand, depend on workers to do the labor that brings profit to their business. Only the owners are empowered to set wages and working conditions.
Example: Consider our factory worker and their factory owner. The factory worker needs that paycheck to live, so he is dependent on the owner for employment. The owner needs the factory worker to do the work that enables the factory to manufacture products and amass profits. The workers cannot manufacture goods unless the factory is in operation and also the owner cannot generate profits in the absence of workers’ labor.
Thus establishes an interdependent relationship between workers and owners which is close yet uneven. Workers depend on owners for income, owners for their income depend on workers, but owners are in power.