Not decidedly false at all. This is the one part of the LVT that I actually agree with. Wealth is a zero sum game. The only ultimate source of real value in the world is from labor applied to material of the world. Time spent laboring towards one thing trades off with time spent laboring for another. Seems zero-sum to me given that financial capital does nothing to increase real value or real wealth.
capital allows the labour specialization to exist. After all, capital is 'saved up labour', available for expenditure for future purposes.
Imagine if you wanted to manufacture a car, which takes a long time to make. If you didn't have capital, you'd have to find/forage for food, and have very little spare resources left to actually do the car manufacturing. If another person, with a large storage of food, gave you said food, but ask in return, for the car, it would work (it's just a matter of negotiating an exchange rate between the food and the car).
