Patrick Barron explains how labor, even with very small amounts of capital at first, can lead to a new prosperity:
What might the ordinary people of Detroit achieve if all barriers to the free use of their labor were removed? What if taxes were eliminated, allowing workers to keep all of their pay, and not just that portion left over after multiple layers of government have skimmed off what they could? And what would result if regulatory barriers to productive work were eliminated?
We could expect that the less capital intensive enterprises would be the first to emerge. The least capital intensive enterprise of all is one’s own toil. We own our bodies and can toil for ourselves or for others in the marketplace. So, we could expect the early emergence of personal services, such as hairdressers, barbershops, cleaning services, home maintenance, babysitting, etc. If capital has confidence that it can be protected from the ravages of both the state and criminals (perhaps I repeat myself), then next we could expect to see small scale capital-intensive enterprises spring up, such as food vendors, private taxis, bodegas, and tobacco shops.