13-5b The capitalists are the only ones who spend money on labor, land, and capital goods

Producers’ goods include labor, land, and capital goods.

“For a man to produce a consumers’ good, he must obtain labor services and the services of land and capital goods, in order to use the technological “know-how” available in the production of the good. The capitalists are the only ones who spend money on producers’ goods.”

Next:

• 13-5b1 A consumer does not need to have a “favorable balance of trade”
• 13-5c The capitalists’ money for investment must be first saved