I completely understand the difference between capital and labor.

The reality is, in our world today, an explorer, discovers a mine. That explorer receives a grant funded by taxes to develop that mine. A businessman purchases the mine from the government for a pittance (because they have a friend in the government who tip them off to a bargain). Businessman hires people at substandard wages to develop the mine into a profitable business and pockets the majority of the profit.

In the businessman’s mind, he owes nobody anything because he is the person who developed the mine, and therefore anything that comes out of it is his to exploit in any way he wants to. He has no obligation to support workers, in fact, he resents having to pay them for their labor

A new technology that comes along which can replace 10 laborers with one machine that is less likely to break down or refuse to work overtime.

The owner fires those 10 laborers who now are unemployed and have no income.

The owner, seeing the profitability of having machines, instead of people, do the work, purchases several more machines, run by a staff of engineers, which is much smaller than the large number of laborers employed earlier.

As a result of not having to pay wages, the business owner sees a dramatic increase in profits, reinforcing his belief that automation is the solution to profitability.

Eventually, the machines become automated enough that the engineers are not even needed.

More profit!

Now, the businessman has an automated business that produces a product which he can sell and not have to incur the cost of any employees.

Everyone who is employed previously at that business is either unemployed, or has found other employment elsewhere, but the total number of employed people will never recover to the level. It was when the mind was using 100% human labor

The government,lobbied by the businessman lobbies, asks him to contribute to a fund to pay for the out of work miners living expenses.

The businessman tells the politicians to go get stuffed because he owes the former employees of his company nothing (and he is absolutely correct about that because he has no contract with them stating he is responsible for their welfare.)

So now we have end state capitalism, which is we have a small number of business owners who rely upon automation to produce their products and a huge under class which relatively speaking is a modern day peasantry.

How do you fix this without a bloody Revolution?