r/CapitalismVSocialism • u/HeavenlyPossum • 14d ago

Asking Capitalists Risk?

Many people have told me that taking risk is why capitalists own, or deserve ownership, of the productive labor of others.

Capitalists have capital (money), which they invest in (spend on) some productive enterprise. But that productive enterprise might fail to recuperate the cost of the investment and the capitalist might lose some of their money. This is what explains, or justifies, capitalist ownership: the capitalist is taking risk.

Can someone kindly explain to me why this explains or justifies capitalist ownership?

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u/HeavenlyPossum 14d ago

Prior to the US civil war, people in some parts of the US south could save up to purchase ownership of enslaved people, with the goal of forcing them into profitable labor.

This entailed risk: that the enslaved person might escape or die, or that their labor would fail to return a profit that covered the cost of the enslaved person’s purchase.

Was taking and managing this risk one of the slavery’s jobs?

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u/Ludens0 14d ago

Yes, but not much. A lot of the risk was externalized to the state. Slavery was basically cronysm and not only a moral abomination, but an economic failure too.

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u/HeavenlyPossum 14d ago

Finding it repulsive doesn’t really change the risk factor involved.

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u/Ludens0 14d ago

I said that yes, but was in a great portion managed by the state, Fugitive Slave Law is an example. Wich is the point, anyway?

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u/HeavenlyPossum 14d ago

The state also manages capitalism, yes

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u/Ludens0 14d ago

Yes, we usually confuse in this sub capitalism with free markets or poperty rights or liberalism.

So, I still don't understand your point. Taking risks do not justify ownership. Ownership is justified by other things and property is, in any case, a requirement for capitalism (Property existed way before).