FACT: Even though employees produce all of the profits, capitalism under-pays employees so employers can be over-paid.
When capitalists praise the benefits of capitalism, they often invoke the philosophical views of Adam Smith. Nevertheless, the capitalistic views of Smith and America's Founding Fathers did not envision the corporate oligarchies that control commerce and politics today. Adam Smith, Thomas Jefferson and other thoughtful writers envisioned an America of yeoman farmers. In other words, the pristine views of capitalism assume the entire economy is comprised of small family farms.
The limits of capitalism were quickly realized with the rise of the industrial revolution. Capitalism does not treat workers as equal citizens in society. Capitalism reduces each worker to the level of a sub-human commodity, a human resource, that capitalists have the right to exploit.
Socialism, on the other hand, points out that workers are not commodities that are given value-added transformations to produce profits.
Workers create the actual profits by performing the value-added transformations on commodities. Thus, as contributing citizens in the creation of wealth, each worker is entitled to an equitable portion of the profits that the worker's efforts help to produce.
If you expect fair wages for the work you perform, then you are a socialist.
Socialist workers not only create the wealth, their efforts also contribute to company growth. So, workers are investors. They invest their time and energy into the business. Socialism acknowledges each worker's efforts and ensures each worker's ownership rights are recognized.
When a capitalist tries to argue that socialism subsidizes the cost of living of citizens that are unable to work, point out the fact that – The lives of wealthy capitalists are actually subsidized by the hard work and sweat of low-wage workers.