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Capital – Part One

March 4, 2009
Don Stott
3/3/2009

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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