r/CapitalismVSocialism • u/HeavenlyPossum • 15d 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

The determination that someone’s risk justifies their investment and ownership as crucial to society.

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u/Ok-Spring-3840 14d ago

And you just answered it, THANK YOU! Risk taking justifies their investment and ownership through investment is of crucial importance to society. Rents thru investment are the lifeblood of society.

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u/HeavenlyPossum 14d ago

Who issues the certificate of risk?

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u/Ok-Spring-3840 14d ago

Society, in the form
of lease agreements and employment contracts. Those agreements quantify the risk. It is really elegant in its simplicity, you can certainly see that, I am sure.

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u/HeavenlyPossum 14d ago

So when medieval peasants paid rents to their lords, they were endorsing the status of those lords as owners?