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As long as firm’s return from doing that exceeds that capital outlay, the firm is making money and its shareholders will see a profit — simplistically, that net return, divided by the relative size of their stake. | As long as firm’s return from doing that exceeds that capital outlay, the firm is making money and its shareholders will see a profit — simplistically, that net return, divided by the relative size of their stake. | ||
Thus, to earn a return, | Thus, to earn a return, a shareholder ''does not have to do anything'' beyond ponying up money and not asking for it back. She ''can’t'' ask for it back, indeed: the transaction by which she invested capital was a sale and purchase: money paid in return for a ''[[share]]''. If she wants out, the company is not obliged to offer her anything, let alone the sum she once invested. She may find someone to whom she can ''sell'' her shares, but she must accept the price they are prepared to pay. | ||
To be sure, a shareholder may wish to oversee how her capital is deployed, but this is to look after her own interests and not to work for the company ''per se''. | To be sure, a shareholder may wish to oversee how her capital is deployed, but this is to look after her own interests and not to work for the company ''per se''. | ||
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In sum: a shareholder contributes not labour, time or effort but ''money'' and is rewarded with ''profit''. A servant contributes labour, time and effort, in order to create profit, and is rewarded with ''money''. | In sum: a shareholder contributes not labour, time or effort but ''money'' and is rewarded with ''profit''. A servant contributes labour, time and effort, in order to create profit, and is rewarded with ''money''. | ||
====On measuring value==== | ====On measuring value==== | ||
{{Drop|I|n a perfect}}world — for a landed capitalist, at any rate — servants would be paid only for what they contributed. This is easier to measure for some workers than others: for salespeople it is straightforward. For back-office staff, less so. For legal officers [[legal value|more or less impossible]]. | |||
In any case, the civilising forces of the labour movement — quiet at the back there — have long since intervened to ensure that all servants are paid a pre-agreed basic wage for their time at work, however productive they are. | In any case, the civilising forces of the labour movement — quiet at the back there — have long since intervened to ensure that all servants are paid a pre-agreed basic wage for their time at work, however productive they are. | ||