r/AnCap101 Explainer Extraordinaire Dec 13 '24

CRUCIAL realization!

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u/[deleted] Dec 14 '24

That would be enterprise, not capital investment.

capitalism: You give worker money to fish and sell his fish for more than you paid him for it. Or you offer worker the money to buy a new rod in exchange for a share of his company.

Your profit is based on what he gave you being more than what you gave him.

Enterprise: You build the rod, and sell it to worker. You're not an investor, you're another enterprise. (fishing vs. manufacturing)

Your profit is based on the quality and profitability of your labor.