First, background on what the terms ‘wealth‘, ‘capital’ and ’employment’ mean in the context of the posts on ‘observ8tions.
Capital and Employment. To produce wealth two ingredients are required: people doing work and ‘the means of production’, or capital, which is all the non-human assets required, such as an office or factory and equipment or tools. In our current system, the theory is that both the owners of the capital and those employed in producing the wealth share in the rewards.
With this definition in place, the role of employment includes:
- The creation of wealth, or in other words, the production of the things that money can buy
- The distribution of wealth with wealth allocation to those who assist in the production of wealth
- A sense of self worth and holding a valued role in society for those who assist in the production of wealth
Of course in a capitalist system, the wealth created in the production of goods and services is shared between those employed in the production of wealth and those who provide the capital assets that enable the production, and through taxation, others in the community.