Happy Labor (and Capital) Day

September 1, 2013

“Any good economist will tell you that as complementary factors of production, labor and capital are not only indispensable but hugely dependent upon each other as well,” economist Larry Reed reminds us. “Capital without labor means machines with no operators, or financial resources without the manpower to invest in. Labor without capital looks like Haiti or North Korea: plenty of people working but doing it with sticks instead of bulldozers, or starting a small enterprise with pocket change instead of a bank loan.”

So as we celebrate Labor Day, Reed suggests we also celebrate “Capital Day.” After all, he says, “I know of no good reason why we should have just one and not the other.”