> "Daniel T." earthlink.net> wrote in
> news:daniel_t-788051.07394606092008@earthlink.vsrv-sjc.supernews.net:
>

>> Publius nospam.comcast.net> wrote:
>>

>>> A capitalist in the second sense provides the financing which allow
>>> the farmers to buy seed, machinery, and fertilizers, the carpenter to
>>> buy tools, vehicles, lumber, and other supplies, and the carpenter to
>>> buy an inventory of fabrics and sewing machines.

>>
>> Where does he get that capital from initially?

>
> That is actually a worthwhile question, given that the preposterous
> Marxist
> "exploitation theory" has gained so much currency (everybody wants a free
> lunch, and needs some rationale to justify it).
>
> Original capital is accumulated from retained earnings. A violin maker who
> produces quality instruments, in great demand, can get a good price for
> his
> violins --- enough that he is able to buy a new planer and perhaps hire a
> helper. He has capitalized his business himself. But he may also invest
> those earnings in his neighbor's machine shop, if he expects it to be more
> profitable over time than his own violin business. Now he has capitalized
> his neighbor's business.
>
> In other words, original capital came from the same place it comes from
> today --- everyone who deposits money unneeded for current expenses in a
> savings account, mutual fund, money market fund, venture capital fund,
> etc., is a capitalist; he is financing the expansion of the economy.