Friday, January 30, 2015

RELATIONSHIP BETWEEN LABOR AND CAPITAL


It is only right and proper to duly note and accordingly realize that as far as ground reality is concerned, labor has preferential consideration over capital. In other words, in today's economic world, the usual reference is made to “Capital and Labor” - not “Labor and Capital” which affirms the proper socio-economic priority. The reason is not that hard to decipher: While the secular sphere considers material resources as having priority over the human agents that work on them in order to make them productive, the objective truth is that labor is intimately affined to no less than human persons as agents of work.

This is not in any way meant to undermine much less to depreciate the worth and importance of capital – but simply intended to emphasize certain truths such as the following: One, it is labor that initially built capital such that in the last analysis, capital is but the fruit of labor. Two, capital by itself alone does nothing but stay as such, temporal resources and means which can even deteriorate when labor does nothing about them. Three, it is labor that makes capital productive for the welfare of all those wanting or needing the goods that come thereof. Four, it is labor that improves capital such as in terms of its being more relevant and responsive to social requirements, not to mention its growth in worth or value. Five, so it is that realistically speaking, labor identified with human agents gifted with human dignity and pursuant human rights, has more intrinsic value than mere material capital.

Concretely taking into account the relationship – the tie, the link, the bond – between the significance of labor and the implications of capital, the following conclusive observations come to order:

1. Labor, considering its subjective personal element, is superior to capital, inclusive of all other factors connected with productivity.

2. Labor can be considered as a human capital with reference to human resources that make material capital precisely productive.

3. Labor is human mind plus human strength which are superior in nature than but material means or resources of manufacturing.

4. Labor means human resources in terms of knowledge and creativity, of understanding and capacity.

5. Labor has intrinsic priority over capital although their complementary relationship is what brings about productivity.

Conclusion: The human dimension of labor is over and above the material value of capital. Capital has its own temporal attributes. These, however, may not diminish the intrinsic human dimension of labor. So is it that when harmoniously enjoined, not only labor is benefited but capital as well grows basically by reason of the mental and/or corporal attributes of human labor.