Evergreen Colorado Real Estate

CAPITAL AND LABOR-TWO ELEMENTS OF A PROSPEROUS NATION FOR EVERGREEN COLORADO REAL ESTATE CITIZENS

The demonstrations in lower Manhattan at Zuccotti Park, have dominated the 24 hour news cycle for the last few weeks. Everybody respects the rights of the protestors to protest, their first Amendments right to assemble, and we all understand the immoral outrage of the Wall Street bailouts; but the socialistic bent of the rhetoric is misplaced and shows the dismal failure of the American educational system who teach these kids the true relationship between capital and labor.

Adam Smith in 1759 carefully defined the intimate relationship between these two segments of society. In their never ending quest for maximum personal gain the workers will shop their skills around to find the most beneficial employment that is available. Employers will compete for the best most productive workers and lure the best employees with salaries, wages, and benefits. If the market demand is down or progress passes an industry by then everyone, both employers and employees, must adjust to the new reality in the market place. So when the train replaced the stagecoach, and the car and truck replaced the train everyone actively in the market was forced to adapt to the new economy.

So also capital. Capital must spend its resources to the best advantage. Employers must invest in the most beneficial industries and maximize their profits. Like labor, this is driven by their own self interest. Capital will hire the best workers to produce the best product for the lowest price so that they can compete with other suppliers of the same product. When demand is high and supply low everyone in the process of delivering a product makes more money; when demand is low and supply is high everyone will feel the pinch and wages and profits will drop.

So both labor and capital are enmeshed in a symbiotic relationship and their fortunes rise and fall together. Their  should be no real hostility between the two other than healthy competition based on the supply and demand for labor and capital. The demonstrators don’t seem to realize that capital, in this case Wall Street, is their friend and the supplier of jobs for their skills. Without the capital investment there are no jobs; and without demand there are no jobs.

The real problem in today’s America is that this formula of self interest acting itself out in the market place has taken on global proportions. Companies must now utilize the global labor force to keep competitive. At the same time the worldwide labor market is bidding prices down, Washington is forcing costs up with birdbrained regulations that militate against the U.S. job market. This adds prohibitive burdens to the American costs of labor and drives jobs out of the country.

Protesting won’t solve the problem of worldwide competition. Companies are in a global mall and must compete for business with the world not just American competitors. American labor and the American bureaucratic job devourer must adapt themselves to the age old realities of the free market demands of competitive pricing and enlightened self interest. The only way to improve the job market is to make employers want to hire people-anything else is doomed to failure.

The secret is that there is no secret – a thriving economy will solve all the other problems. A home is a hard asset and is historically the best investment in troubles times. Not only will you make money but also You can live in your investment, while you will enjoy special income tax treatment. We are MARK ENGLISH REAL ESTATE and are Your one stop shop for all Your EVERGREEN COLORADO REAL ESTATE and CONIFER COLORADO REAL ESTATE. We are also an EVERGREEN COLORADO CUSTOM HOME BUILDER and are looking forward to serving You with all Your Real Estate needs. Please, give us a call at 303-674-0148, Email us at markenglishrealestate@msn.com or visit us on the web at www.evergreencoloradoliving.com. Don’t forget to register for Your FREE BUYER INCENTIVES.