The notion that capital is the fruit of labor is genuine and real in its original meaning. However it is an early 20th century sentiment. Since the evolution of Bretton Woods style fiscal manipulation, it has gradually become less clear, and the fiat of government has become the origin point of capital. THis is of course a substitute for the real thing, but since money is at the bottom a reflection of confidence in an idea, it works until that confidence erodes and crumbles. The entire credit market is built on the belief in the credit of the various parties wh generate and distribute this fiat capital.

It creates a bubble, like any Ponzi scheme, that shrinks rapidly when confidence fails and thus breaks the fiat cycle's refresh rate. At that point the economy can be expected to shrink until it approximates the level of genuine capital available, backed by real things and real people. The difference between this ground-truth confidence and the false-belief level of confidence in the bubble can be dramatic.

A