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I would concede that yes, the process of creating wealth does increase the overall size of the pie, but it does not increase the size of this pie proportionally
by ebrenes 10y ago
I would concede that yes, the process of creating wealth does increase the overall size of the pie, but it does not increase the size of this pie proportionally for all involved.
That increase in pie, is the aggregate effect on the outstanding wealth. So, it could follow any such distribution that in the ends provides a net win. For example, automating some job will not increase the level of wealth of those who have now become jobless. It will undoubtedly increase the wealth of those who are now benefited by this automation, and in the end it will be a net win for the economy. However, those who were negatively affected see no benefit from this increase in the pie.
I believe that wealth is sometimes increased through tactics and strategies that negatively affect the wealth of other through mechanisms such as slavery, indentured servitude, extremely low wages and other situations that take advantage of the less advantaged (usually in 3rd world countries).
So yeah, the size of the pie increases, but those bigger slices are not appearing on everyone's plates, and often times people are ending up without any pie on their plate.