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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?


To: TigerPaw who wrote (10913)2/6/2006 5:20:53 PM
From: TimF  Read Replies (1) | Respond to of 541604
 
the very act of taking a job restricts your opportunities for another, different job and that risk is not compensated.

And making one investment restricts your opportunities for others and that risk is not compensated.

The employee gets compensation for his labor, the investor for his capital, but neither gets any compensation explicitly for the lost opportunity. Or looking at it another way they both get compensation for that factor. The existence of that factor effects the market for investments and for labor. Anything that makes providing labor or investment capital less desirable will tend to require a higher return on the labor or capital.

Tim