--- title: "Meaning & Key Takeaway of: The one important distinction between the…" description: "\"The one important distinction between the two factors of production is that in a free society, ownership of the human factor, labor, cannot be concentr..." image: "https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg" --- # The one important distinction between the two factors of… ![“The one important distinction between the two factors of production is that in a free society, ownership of the human factor, labor, cannot be concentrated while ownership of the non-human factor, capital, can be.” quote by Louis O. Kelso](https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg) [Download](https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg) [Open image](https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg) > “The one important distinction between the two factors of production is that in a free society, ownership of the human factor, labor, cannot be concentrated while ownership of the non-human factor, capital, can be.” [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. In free societies, labor ownership stays dispersed, but capital can be concentrated. **In simple terms:** Labor stays spread; capital can concentrate. Key Takeaway Promote broader capital ownership. Themes economics property labor capital freedom Mood thoughtful critical Type economic philosophical When to use this quote - business formation - investment policy - employee ownership - wealth distribution Key Concepts property rights economic inequality Questions to Reflect On - What policies can democratize capital ownership? - How does labor dispersion affect economic growth? A Different Perspective Concentration of capital may still create power imbalances. ★ ★ ★ ★ ★ No ratings yet [Capitalism](https://sms4smile.com/quotes/about/capitalism/) [Distinction](https://sms4smile.com/quotes/about/distinction/) [Economy](https://sms4smile.com/quotes/about/economy/) [Factor Labor](https://sms4smile.com/quotes/about/factor-labor-731394/) [Factors](https://sms4smile.com/quotes/about/factors/) [Factors of production](https://sms4smile.com/quotes/about/factors-of-production/) [Free society](https://sms4smile.com/quotes/about/free-society/) [Humans](https://sms4smile.com/quotes/about/humans/) [Important](https://sms4smile.com/quotes/about/important/) [Important Distinction](https://sms4smile.com/quotes/about/important-distinction-1051215/) [Labor](https://sms4smile.com/quotes/about/labor/) [Labor Concentrated](https://sms4smile.com/quotes/about/labor-concentrated-4398230/) [Liberalism](https://sms4smile.com/quotes/about/liberalism/) [Ownership](https://sms4smile.com/quotes/about/ownership/) [Ownership Non](https://sms4smile.com/quotes/about/ownership-non-4398231/) [Politics](https://sms4smile.com/quotes/about/politics/) [Productions](https://sms4smile.com/quotes/about/productions/) [Society Ownership](https://sms4smile.com/quotes/about/society-ownership-4398232/) [Two](https://sms4smile.com/quotes/about/two/) [Wisdom](https://sms4smile.com/quotes/about/wisdom/) ## Related quotes > [Two-factor economics makes it clear that our economic problem is not what one-factor (labor-centric) thinkers assert: an inequitable distribution of income. It is an…](https://sms4smile.com/quotes/louis-o-kelso/two-factor-economics-makes-it-clear-that-our-economic-problem-is-not/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [No Keynesian has ever proposed a measure designed to make the individual more productive; for that would require institutional means for enabling him to…](https://sms4smile.com/quotes/louis-o-kelso/no-keynesian-has-ever-proposed-a-measure-designed-to-make-the/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Money is not a part of the visible sector of the economy; people do not consume money. Money is not a physical factor of…](https://sms4smile.com/quotes/louis-o-kelso/money-is-not-a-part-of-the-visible-sector-of-the-economy-people-do/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Equality of economic opportunity, in the context of private property, means equality of opportunity for the millions of capital-less households of today to buy,…](https://sms4smile.com/quotes/louis-o-kelso/equality-of-economic-opportunity-in-the-context-of-private-property/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [There is a very important distinction between a critical attitude of mind (or critical faculty) and a sceptical attitude.](https://sms4smile.com/quotes/william-beveridge/there-is-a-very-important-distinction-between-a-critical-attitude-of/) [William Beveridge](https://sms4smile.com/quotes/author/william-beveridge/) > [I did ... learn an important distinction in graduate school: a speculation about who had syphilis when is gossip if it's about your friends,…](https://sms4smile.com/quotes/margaret-atwood/i-did-learn-an-important-distinction-in-graduate-school-a-speculation/) [Margaret Atwood](https://sms4smile.com/quotes/author/margaret-atwood/) > [“There is an important distinction between what is necessary to the being of a church, and what is necessary to its well-being” (55).”](https://sms4smile.com/quotes/ryan-m-mcgraw/there-is-an-important-distinction-between-what-is-necessary-to-the/) [Ryan M. McGraw](https://sms4smile.com/quotes/author/ryan-m-mcgraw/) > [“The most important distinction anyone can ever make in their life is between who they are as an individual and their connection with others.”](https://sms4smile.com/quotes/ann-linden/the-most-important-distinction-anyone-can-ever-make-in-their-life-is/) [Anné Linden](https://sms4smile.com/quotes/author/ann-linden/) > [An unlearned carpenter of my acquaintance once said in my hearing: "There is very little difference between one man and another; but what little…](https://sms4smile.com/quotes/william-james/an-unlearned-carpenter-of-my-acquaintance-once-said-in-my-hearing/) [William James](https://sms4smile.com/quotes/author/william-james/) > [It is preferable to regard labour, including, of course, the personal services of the entrepreneur, and his assistants, as the sole factor of production,…](https://sms4smile.com/quotes/john-maynard-keynes/it-is-preferable-to-regard-labour-including-of-course-the-personal/) [John Maynard Keynes](https://sms4smile.com/quotes/author/john-maynard-keynes/) > [We do not assert that the capitalist mode of economic calculation guarantees the absolutely best solution of the allocation of factors of production. Such…](https://sms4smile.com/quotes/ludwig-von-mises/we-do-not-assert-that-the-capitalist-mode-of-economic-calculation/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [On the unhampered market there prevails an irresistible tendency to employ every factor of production for the best possible satisfaction of the most urgent…](https://sms4smile.com/quotes/ludwig-von-mises/on-the-unhampered-market-there-prevails-an-irresistible-tendency-to/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [Intellectual capital is the most valuable of all factors of production.](https://sms4smile.com/quotes/brian-tracy/intellectual-capital-is-the-most-valuable-of-all-factors-of-production/) [Brian Tracy](https://sms4smile.com/quotes/author/brian-tracy/) > [The boom squanders through malinvestment scarce factors of production and reduces the stock available through overconsumption; its alleged blessings are paid for by impoverishment.](https://sms4smile.com/quotes/ludwig-von-mises/the-boom-squanders-through-malinvestment-scarce-factors-of-production/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [One day, because they realize for some reason or other that they must stop credit expansion, the banks do stop creating new credit to…](https://sms4smile.com/quotes/ludwig-von-mises/one-day-because-they-realize-for-some-reason-or-other-that-they-must/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) ## More by Louis O. Kelso > [It is the institutions of society, not parental genes, that bestow the blessings of ownership of productive capital.](https://sms4smile.com/quotes/louis-o-kelso/it-is-the-institutions-of-society-not-parental-genes-that-bestow-the/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [The primary cause of disorder and lawlessness today, as throughout history, is the poverty of the many in contrast to the affluence of the…](https://sms4smile.com/quotes/louis-o-kelso/the-primary-cause-of-disorder-and-lawlessness-today-as-throughout/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Money is not a part of the visible sector of the economy; people do not consume money. Money is not a physical factor of…](https://sms4smile.com/quotes/louis-o-kelso/money-is-not-a-part-of-the-visible-sector-of-the-economy-people-do/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Take Milton Friedman, he sits at his desk pontificating about such bunk as the monetary system being the answer to our problems. The monetary…](https://sms4smile.com/quotes/louis-o-kelso/take-milton-friedman-he-sits-at-his-desk-pontificating-about-such/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [There is no future for those who cannot or will not think.](https://sms4smile.com/quotes/louis-o-kelso/there-is-no-future-for-those-who-cannot-or-will-not-think/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [They sense that there's a majority out there and that the emotions are all on the other side-if they can be heard. They think…](https://sms4smile.com/quotes/louis-o-kelso/they-sense-that-there-s-a-majority-out-there-and-that-the-emotions/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Thus, the capital owner is not a parasite or a rentier but a worker - a capital worker. A distinction between labor work and…](https://sms4smile.com/quotes/louis-o-kelso/thus-the-capital-owner-is-not-a-parasite-or-a-rentier-but-a-worker-a/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [When capital owners are few, the private-property conduits of necessity create vast savings reservoirs for those few. If there were many owners, the same…](https://sms4smile.com/quotes/louis-o-kelso/when-capital-owners-are-few-the-private-property-conduits-of/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Equality of economic opportunity, in the context of private property, means equality of opportunity for the millions of capital-less households of today to buy,…](https://sms4smile.com/quotes/louis-o-kelso/equality-of-economic-opportunity-in-the-context-of-private-property/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [If capital produces most of the economy's wealth and income is distributed on the basis of productive input, the individual can hardly reach his…](https://sms4smile.com/quotes/louis-o-kelso/if-capital-produces-most-of-the-economy-s-wealth-and-income-is/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [All this plan does is make everybody a capitalist. I know that the New York Stock Exchange says there are 25 million shareholders in…](https://sms4smile.com/quotes/louis-o-kelso/all-this-plan-does-is-make-everybody-a-capitalist-i-know-that-the-new/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [The schemes to set up blacks in cleaning stores, gas stations, hamburger stands and fried-chicken franchises, all the low-profit, low-capital enterprises, will rivet the…](https://sms4smile.com/quotes/louis-o-kelso/the-schemes-to-set-up-blacks-in-cleaning-stores-gas-stations/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [Technology has no function except to save labor. Yet how often do we hear that the purpose of new capital formation is to create…](https://sms4smile.com/quotes/louis-o-kelso/technology-has-no-function-except-to-save-labor-yet-how-often-do-we/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [There is more to life than material well-being. Who would claim that the wholly wage-dependent family enjoys the dignity, the security, the range of…](https://sms4smile.com/quotes/louis-o-kelso/there-is-more-to-life-than-material-well-being-who-would-claim-that/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) > [The sooner the world solves its economic problems, the sooner its inhabitants can afford leisure and peace and get on with the non-material things…](https://sms4smile.com/quotes/louis-o-kelso/the-sooner-the-world-solves-its-economic-problems-the-sooner-its/) [Louis O. Kelso](https://sms4smile.com/quotes/author/louis-o-kelso/) [Explore all 55 Louis O. Kelso quotes ](https://sms4smile.com/quotes/author/louis-o-kelso/) ## More Capitalism quotes > [Don't let's lose sight of what creates wealth. It is open markets, it is capitalism.](https://sms4smile.com/quotes/rupert-murdoch/don-t-let-s-lose-sight-of-what-creates-wealth-it-is-open-markets-it/) [Rupert Murdoch](https://sms4smile.com/quotes/author/rupert-murdoch/) > [Crony capitalism is essentially a condition in which... public officials are giving favours to people in the private sector in payment of political favours.](https://sms4smile.com/quotes/alan-greenspan/crony-capitalism-is-essentially-a-condition-in-which-public-officials/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [Philosopher is a dictator who modifies accepted standards with his thoughts.](https://sms4smile.com/quotes/ilkin-santak/philosopher-is-a-dictator-who-modifies-accepted-standards-with-his/) [Ilkin Santak](https://sms4smile.com/quotes/author/ilkin-santak/) > [There is only one party in the United States, the Property Party...and it has two right wings: Republican and Democrat. Republicans are a bit…](https://sms4smile.com/quotes/gore-vidal/there-is-only-one-party-in-the-united-states-the-property-party-and/) [Gore Vidal](https://sms4smile.com/quotes/author/gore-vidal/) > [ Neither Italian fascism nor German national "socialism" have anything in common with such a \[Soviet socialistic\] society, primarily because private ownership of factories, plants,… ](https://sms4smile.com/quotes/joseph-stalin/neither-italian-fascism-nor-german-national-socialism-have-anything/) [Joseph Stalin](https://sms4smile.com/quotes/author/joseph-stalin/) > [Corporations have nothing to do with values, and they know it, and sometimes say it.](https://sms4smile.com/quotes/eric-kierans/corporations-have-nothing-to-do-with-values-and-they-know-it-and/) [Eric Kierans](https://sms4smile.com/quotes/author/eric-kierans/) > [Both fact and logic seem to me to support the view that savings invested in privately owned economic tools of production amount to an…](https://sms4smile.com/quotes/f-a-harper/both-fact-and-logic-seem-to-me-to-support-the-view-that-savings/) [F. A. Harper](https://sms4smile.com/quotes/author/f-a-harper/) > [The free market is ugly and stupid, like going to the mall; the unfree market is just as ugly and just as stupid, except…](https://sms4smile.com/quotes/anonymous/the-free-market-is-ugly-and-stupid-like-going-to-the-mall-the-unfree/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Capitalism, communism ... it's all garbage.](https://sms4smile.com/quotes/mstislav-rostropovich/capitalism-communism-it-s-all-garbage/) [Mstislav Rostropovich](https://sms4smile.com/quotes/author/mstislav-rostropovich/) > [There are no two countries with the same style of economic mechanism, with the same capitalism.](https://sms4smile.com/quotes/anatoly-chubais/there-are-no-two-countries-with-the-same-style-of-economic-mechanism/) [Anatoly Chubais](https://sms4smile.com/quotes/author/anatoly-chubais/) > [It is more than a little ironic that "capital accumulation" once a rather tendentious Marxian view of a supposed capitalist obsession, should have become…](https://sms4smile.com/quotes/robert-kuttner/it-is-more-than-a-little-ironic-that-capital-accumulation-once-a/) [Robert Kuttner](https://sms4smile.com/quotes/author/robert-kuttner/) > [Historically, usury was defined as any interest whatever on an unproductive loan.Our whole banking system I have ever abhorred, I continue to abhor, and…](https://sms4smile.com/quotes/john-adams/historically-usury-was-defined-as-any-interest-whatever-on-an/) [John Adams](https://sms4smile.com/quotes/author/john-adams/) > [Socialism is humanity's second nature. All politicians do is turn human vice into votes.](https://sms4smile.com/quotes/ilana-mercer/socialism-is-humanity-s-second-nature-all-politicians-do-is-turn/) [Ilana Mercer](https://sms4smile.com/quotes/author/ilana-mercer/) > [“Scholars have long debated whether capital markets lead to appropriate levels of saving and investment for future generations.”](https://sms4smile.com/quotes/david-l-weimer/scholars-have-long-debated-whether-capital-markets-lead-to/) [David L. Weimer](https://sms4smile.com/quotes/author/david-l-weimer/) > [“A car is one of the most interesting inventions, but driving is one of the most boring activities.”](https://sms4smile.com/quotes/mokokoma-mokhonoana/a-car-is-one-of-the-most-interesting-inventions-but-driving-is-one-of/) [Mokokoma Mokhonoana](https://sms4smile.com/quotes/author/mokokoma-mokhonoana/) [Browse all 3,832 Capitalism quotes ](https://sms4smile.com/quotes/about/capitalism/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The one important distinction between the two factors of production is that in a free society, ownership of the human factor, labor, cannot be concentrated while ownership of the non-human factor, capital, can be.", "creator": { "@type": "Person", "name": "Louis O. Kelso" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/louis-o-kelso/the-one-important-distinction-between-the-two-factors-of-production/", "about": { "@type": "Thing", "name": "Capitalism" }, "@id": "https://sms4smile.com/quotes/louis-o-kelso/the-one-important-distinction-between-the-two-factors-of-production/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg", "contentUrl": "https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg", "url": "https://sms4smile.com/quotes/i/e6f/louis-o-kelso-12324_capitalism_the-one-important-distinction-between-th_1320317.jpg", "width": 1080, "height": 1080, "caption": "“The one important distinction between the two factors of production is that in a free society, ownership of…” — Louis O. Kelso", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Louis O. Kelso", "item": "https://sms4smile.com/quotes/author/louis-o-kelso/" }, { "@type": "ListItem", "position": 4, "name": "The one important distinction between the...", "item": "https://sms4smile.com/quotes/louis-o-kelso/the-one-important-distinction-between-the-two-factors-of-production/" } ], "@id": "https://sms4smile.com/quotes/louis-o-kelso/the-one-important-distinction-between-the-two-factors-of-production/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```