Economic consequences of capital and labor confrontation

Abstract

The scientific perception of capital and labor leads to the conclusion that these concepts are complementary. Labor that transfers human capital to produced items is a measurable category and its concentration in objects determines their value. On the basis of the set of fundamental concepts economics of labor is constituted. The article develops the theory of this economics, showing the fundamental differences in relation to the prevailing monetarism. As a consequence, a coherent macroeconomics with the original wage equation of exchange arises, where the category of labor productivity is the basic measure of economic progress.