Russ Nelson's blog

These facts are well-kept secrets of economists. The first rule of economics is: don't reveal the secrets. I'm going to take a big risk and reveal thse secrets. Don't tell anyone else!

• for a business, capitalists are a cost,
• "excess" profits go to the entrepreneurs who created the business,
• competition eliminates these entrepreneurial profits over time, and
• the primary beneficiary of capital investment are workers.

Historically, capitalists have only gotten about a 5% yearly return on their money.

posted at: 15:57 | path: /economics | permanent link to this entry