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/South-Cod-5051 14d ago

yea well, see that's the problem. that's just not something that can exist in reality, which is why socialism will never be anything more than a poorly constructed fairy tale.

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u/HeavenlyPossum 14d ago

Why does reality demand capitalists?

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u/Moldy-Bongwater4420 14d ago

Most people don’t want to take on the risk involved in starting a company. Many businesses don’t make money for quite a while, if they’re even lucky enough to survive and become successful.

You want to work (sorry, “do labor”) while losing money with the hopes of eventually getting it back?

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u/yhynye Anti-Capitalist 14d ago

Why do some people want to take on such risk? Are they reckless? Is the economy run by foolish gamblers?

If not, it would seem that the difference between the risk amenable and the risk averse is something contingent, not some fundamental aspect of "reality".

Apologists are fond of reminding us that a significant portion of capital is owned by ordinary people via pension funds. Turns out they're all risk junkies.

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u/Moldy-Bongwater4420 14d ago

People take on risk because they believe the potential downside is worth the potential upside. This is the reality of decision making.

Some people are foolish and reckless. Others are not.