During the period of capital moving from one employment to another, the profits on that to which capital is flowing will be relatively high, but will continue so no longer than till the requisite capital is obtained.
Sentiment: NEGATIVE
Capital is a result of labor, and is used by labor to assist it in further production. Labor is the active and initial force, and labor is therefore the employer of capital.
You will always need more capital than you think, because it will always take you longer to reach profitability than you can imagine.
In a condition of society and under an industrial organization which places labor completely at the mercy of capital, the accumulations of capital will necessarily be rapid, and an unequal distribution of wealth is at once to be observed.
Moreover, there is an unearned increment on capital and on labor, due to the presence, around the capitalist and the laborer, of a great, industrious, and prosperous society.
Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.
Developing new products is labour- intensive. So is producing the capital goods needed to make them. These jobs disappear when innovation stalls.
Capital is that part of wealth which is devoted to obtaining further wealth.
I really believe that if capital doesn't come to the entrepreneurs, the entrepreneurs have no choice but to go to the capital.
Because in the New Normal you are more worried about the return of your capital, not return on your capital.
Once constituted, capital reproduces itself faster than output increases. The past devours the future.