Who is exploiting who
Imagine an artisan widget maker who can produce 5 widgets per day at a profit of $10 each for a daily income of $50. Now imagine a capitalist who builds a widget making machine. That machine can produce 100 widgets per day at equal quality to those produced by the aforementioned widget maker. The cost of production, is $3/widget, considering the amortization of the construction of the machine and operating costs but ignoring the costs the artisanal manufacturer incurred such as materials, as those remain constant. The capitalist offers to hire the artisanal manufacturer to run the machine so as to ensure high standards are met. And he offers to pay him $1 per widget produced while selling the widgets for $5. This doubles the artisanal producers daily income. The entrepreneur likewise profits $1/widget. Who is being taken advantage of in this situation?
submitted by /u/old_guy_AnCap
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