Rodney is correct that "labor" and "capital" are independently productive
if we understand that in binary economic theory we consider labor and capital
as independent variables in the mix of contributions humans (and only humans
through their ownership rights) make to the process of producing economically
useful goods and services. But John is also right in stating the obvious
empirical fact that for purpose of economic analysis the capital factor
cannot work without the labor factor, at least until the robots of the world
can perform all the economic work and human economic work is eliminated
entirely. Hence, I would argue that the two factors are "independent"
variables of any economic productive process for determining distributive
rights in an economy based on private property and competitive markets, but
these factors operate "interdependently" or "cooperatively" (as suggested by
Rodney) in the real world.
Ed Dodson
here:
I view the
plan advocated by Adler and Kelso as mitigation rather than as transformative.
Taking my lead from the moral principles espoused by Henry George
I accept that the earth is our equal birthright. The political
economists from Turgot and Smith on dealt in their own way with the land
question; that is, whether any individual can justly claim as private
property the rental value of land. Rent arises in societies because the
supply of land is fixed, while population keeps increasing. Binary economics
redefines rent as interest (i.e., a return to capital). The fundamental
disconnect is that land (i.e., nature) is the source of all wealth.
When some are denied access to nature, they are denied their birthright.
Binary property rights mitigates the current distributional
injustice but does not address the fundamental problem that rent -- as
differentiated from the interest earned by the use of capital goods in the
production of wealth is -- and under law ought to be -- treated
as wealth belonging to the entire community. The rent fund is what is
available to us to cover the cost of public goods and services we
democratically agreed upon; any surplus should be distributed to each
person as a "citizens dividend."