9

Necessary Caveats When Discussing Slavery: First before tackling this question it is important to note that this issue is broad and complex. This is because there is no single 'slavery'. For example, slavery under the Roman Empire was not the same as slavery practiced in US south (see Tamin; 2017). Furthermore, even within a given society there might be ...


2

Dividends have to be taxed as income, as otherwise people can incorporate, have their wages taxed as revenue for the corporation, and then pay themselves a dividend. (Canada adjusts taxes on dividends in an attempt to make these two approaches equivalent for taxes purposes.) Capital gains are at a lower rate for reasons that are debatable. However, in order ...


1

Why are profits higher from agricultural/automatable work, but not those from factory work and non-automatable services, when using slaves rather than wage labor? Labor with freedom enables the development of human capital, which becomes more important to productivity when work involves specialized skills and a goal of quality (not merely quantity). The ...


1

Prices were too high. 2 billion pounds of cotton were picked annually by 2 million american slaves at ten cents per pound. That's 100 dollars per year output for a slave that cost thousands, plus upkeep. Slavery cost more than farm rent. Wages are cheaper than the equivalent ownership cost because they can be tailored to a specific task rather than buying ...


1

Your figures reports ex-post (say end of year) returns on capital investments. Ex-ante (beginning of the year, or before the investment) these returns are random and unknown, and there is a trade-off between return and risk. If investor $i$ is investing rationally her assets in firm $j$ instead of $k$, according her specific risk aversion and information set ...


1

Edit: after OP made changes to his question and clarification this answer became less relevant. I am still keeping it here because OP said some parts of it and references are still useful. There are several reasons why even if all markets were perfect rates of return would not equalize. I will just focus on some major ones. Many countries have some capital ...


Only top voted, non community-wiki answers of a minimum length are eligible