“In economic terms, software translates labor into capital. So Marx is rolling o

–“In economic terms, software translates labor into capital. So Marx is rolling over in his grave right now. Because it’s the complete refutation of his entire theory.” – Marc Andreeson

Hmmm… I would say that software reduced capital costs to nothing but labor, and as such financing costs, organizing costs, and risks to just labor costs and risks, that can be born by the laborers alone.

Most capital production requires financing and organizing costs and risks, and laborers don’t share in that contribution or risk – thats why they’re paid whether profit or loss.. Whereas in software, in a startup, the labor (developers) do share in that investment and risk.

Software isn’t new. It’s just fairly easy to capture value in software vs writing a book.