- Parenti differentiates between owners and workers on the basis of income. Owners (capitalist class) live on investments: stocks, bonds, rent, and other income that comes from other people’s labor. On the other hand, employees make their living through wages and salaries by doing work.
2. Labor, not money, is the real currency of value, says Smith. Money is only a symbol (a “nominal” price), but the true value of any good is the human effort that has been expended in creating it. A tree has no value until it is cut, formed and carried away by the workers. Smith is basically stating that human labour is the source of all economic values, and Parenti aims to demonstrate how this is important because workers only get a fraction of economic value for their work.
3. This is a compelling argument to me. The reading explicitly argues that class is not the same as identities such as race or gender because class is not merely a social identity, it is a structural relationship. It’s not just being a working class person, it’s being materially dependent on an employer for your survival. It is not a cultural but an economic dependency.
What resonates most is Erik Olin Wright’s point: “what you have determines what you have to do to get what you get.” The structural position of a nurse and a farm worker may appear very different, but both must sell their labor to survive, and they are culturally different. We’re all in the same boat, which is more compelling than identity.
4. According to Heideman, workers and capitalists are interdependent, but not equally so. Workers rely on the capitalists for employment and earnings. Capitalists rely on the workers for profit production. Both classes must go together, but there is an unequal exchange.
This is not the same as, for example, race, where maintaining a specific ongoing relationship with a person of color does not require a white person’s racial position. However, a worker cannot live without an employer and a capitalist without workers to exploit.
Amazon is a company that depends on Amazon workers for its payroll. Amazon, however, also relies on them to pack and ship orders, and without them Amazon would have no profits. That is the power of strikes, they make the capitalist worker’s reliance an instrument of resistance against the capitalist.
