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I think I'm very late at the party, but anyway I'm hoping that someone educate me. I still can't agree with PG in that wealth is something that can be created.
by euske 11y ago
I think I'm very late at the party, but anyway I'm hoping that someone educate me.
I still can't agree with PG in that wealth is something that can be created. When a woodworker makes a chair to get money, he's merely trading his skill and time with money. The net wealth of the world hasn't increased. The perceived "win-win" situation only exists because there's a partiality in different types of resources: some people only have time, some people only have food, and some others only have iron, etc. If the world gets truly homogeneous, there's no way to create value. In reality, people are not homogeneous, so they keep trading, but still the total wealth isn't increasing. i.e. the economy is almost always a zero-sum game.
It's not a zero-sum game only in two cases: 1. When we take resources from the outside world. This typically happens when we mine a natural resource. Or 2. When we do unfair trading with people who somehow we don't deem as proper "human". This is pretty much a form of slavery or extortion.
i.e. the economy is not a zero-sum game when exploitation happens.
I don't think PG is advocating the second type of the economy, so I don't understand how he can think we're still creating wealth.
- Houshalter 11y agoBut the woodworker literally created wealth. The world now has more chairs than it used to. The same is true for nonphysical goods, like writing software. In addition to actually creating things, people can trade things. I have a thing you want, you have a thing I want. We trade and we are both better off, so the amount of utility - "wealth" - has been increased.
- deleted 11y ago[deleted]
- towlejunior 11y agoWhat if you're better at making chairs, and I'm better at making shoes? As you say, partiality of resources, but how is that trade zero-sum? You benefit, I benefit. To be zero-sum, one of us would need to lose.
- euske 11y agoSo you're saying wealth is actually something like happiness? Then I can see it can be created, but I thought he was talking about something materialistic.
- towlejunior 11y agoKind of. I'm not sure how I would categorize it, really. "Wealth" is abstract, but shoes are not.
- meanduck 11y ago> so I don't understand how he can think we're still creating wealth. Science??? Every major scientific invention has literally created wealth. Period.