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Capital – Part One

March 4, 2009
Don Stott

The Dictionary gives several definitions of “Capital” as regards money, but they all boil down to “wealth.” If one dissipates one’s capital, one becomes broke. Make sense? If a person spends more than they take in, they are losing capital. What creates capital? Capital is created by making a profit on an endeavor such as farming, mining, selling, transporting, or manufacturing, among many profit making ventures. A worker’s salary is capital, as is a store’s profit, inventory and fixtures. A farmer selling his wheat for less than its cost to raise, is becoming decapitalized. Government is not a profit making venture, but an albatross hung around the neck of workers, manufacturers, and would be profit generators.

The story continues …..

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