> "As soon as stock has accumulated in the hands of particular persons,
> some of them will naturally employ it in setting to work industrious
> people, whom they will supply with materials and subsistence, in order
> to make a profit by the sale of their work, or by what their labour
> adds to the value of the materials...The value which the workmen add
> to the materials, therefore, resolves itself in this case into two
> parts, of which one pays their wages, the other the profits of their
> employer upon the whole stock of materials and wages which he
> advanced."
> -- Adam Smith 1776, Book I, Chapter VI
>
> Above, Smith writes about "two parts". What are these two parts?
> 1.
Payment to labor
> 2.
Payment to capital.
> These two parts are two parts of what?
Total output of the firm.
> Why might somebody opposed to capitalism find the above passage of
> Smith supportive of his position?
Because it hasn't occurred to him that capital is productive.
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