An immortal fumble by David Friedman (2-Oct-2002)

Total output of the firm
>   "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.
 Fumble Index  Original post & context: ddfr-BFB775.13303802102002@sea-read.news.verio.net