The Individual Worker’s Capital Value

Chapter summary

This chapter examines The Individual Worker’s Capital Value, using the author’s early-twentieth-century investment framework to explain how investors were expected to judge security quality, income, risk, and market conditions. It opens from the chapter’s own discussion: It is a perfectly logical calculation to analyze an individual’s capital value to himself, for an individual worker, with only his services to sell, is his own invested capital. A man earning $6,000 a year is getting an income which amounts to 6% interest on $100,000.