And since the added value created by the organisation, brand and power is, in a bank, substantial, the shareholders' apparent return on capital is substantial.
If they have low wages, relative to "added value," that just means there is an oversupply of labour.
There is no lack of labour, return on capital is 1000% and a country of 5 million has just 4 banks? Of course, the reason for these profits is clear:
Banking is a government created monopoly. Free lunch to stock owners.
In many cases, this doesn't matter, because in many cases money is not the limiting factor of production. But it is when dealing with the financial system, and its interaction with the rest of the economy.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
