Capital vs. Talent:Capital Is Plentiful, Talent Scarce
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Submitted by CARPE DIEM
I came across an interesting 2005 New Yorker article titled “Net Worth,” here are some excerpts:
In the traditional struggle between capital and labor, more often than not capital has won, because the real source of value for most companies has historically been the hard assets that they owned and controlled. Toyota owes its success to its machines, assembly lines, and system of production. For Wal-Mart, it’s primarily store location, technological efficiency, and product selection. For Coca-Cola, it’s carbonated beverages and exceptional distribution. Workers for these companies are, for the most part, interchangeable, so their bargaining power is limited.
