I keep reading how capitalists are exploiting the workers.
This is, apparently, because the worker's labor, alone, adds value to the product.
Like most of the best lies, this has a kernel of truth.
Iron ore underground isn't worth much until someone does the labor to dig it up.
The dug ore is worth more if someone does the labor to smelt iron.
Still more if someone does the labor to make the iron into steel.
Still more if someone does the labor to turn that steel into a part.
Still more if someone does the labor to add that part to an assembly.
And still more if someone does the labor of selling that assembly to a customer.
Without any labor, that iron ore sits underground and the owner of the land and mineral rights gets nothing.
But is he exploiting the worker by having him dig up the ore? Yes. He's making productive use of the worker.
At no point in the process of going from ore to product is any worker doing it for free. They will be paid regardless of the price of iron ore. Regardless of the price of steel. Regardless of the cost of fabrication. Regardless of the cost of assembly. Regardless of the price of sale.
I have to repeat: Jobs are a side effect of a successful business.
Fledgling and unsuccessful businesses don't have workers to exploit. In the first case, the owners are eating all the costs and often not being paid anything at all.
New businesses devour money and most fail before hiring the first employee.
But then they hire that first employee because there's more to do than the owners can manage on their own.
If there are zero sales, does that employee get paid?
Yes, they do.
Does the owner?
No, they do not.
So, let's return to ore.
The owner of the land has paid for it. So they're out that money unless they do something with the land. If they bought it because they thought there was ore under it, then they start digging.
One person can't dig much, so they spend more money to buy or rent equipment and hire people to operate it.
This spending is also called "investing."
Not once have I seen any glorious worker's paradise advocate suggest that the workers or the equipment dealer return the money they were paid should it turn out there's no ore under the land.
Who exploited whom here?
Investment is a risk. Smart, or lucky, investments lead to getting the owner more money than they spent.
But notice the workers get paid regardless? No risk.
So, workers, you don't wanna be exploited? Share the risk. Work for nothing in exchange for a share of the profits. Oh, there might not be any...
Wait, workers, you cannot do that. It's illegal. Workers have to be paid a minimum wage.
Ooops. I doubt it was employers who demanded that, so this petard is yours; workers.
