The nature of capital was a major debate issue at the turn of the twentieth century because economist wanted to know how quickly the economy could adjust and recover from a depression. If capital were homogeneous and highly liquid, then the adjustment process should not take long and the economy could soon be back on its feet. But if capital were heterogeneous and not easily transferable to other uses, then the adjustment process could take much longer and it might take years for a nation to recover from a depression .Mark Skousen
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The nature of capital was a major debate issue at the turn of the twentieth century because economists wanted to know how quickly the economy could adjust and recover from a depression. If capital were homogeneous and highly liquid, then the adjustment process should not take long and the economy could soon be back on its feet. But if capital were heterogeneous and not easily transferable to other uses, then the adjustment process could take much longer and it might take years for a nation to recover from a depression. Leftists believed that the economic system was dominated by big business owners who gained their wealth through exploiting workers.
The wealthy had too much power over government because they had too much money. A progressive income tax would help reduce inequality among people of different classes. These policy changes would allow everyone to have more control over their lives.
Source: The Making Of Modern Economics: The Lives And Ideas Of The Great Thinkers
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