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This can be very hard to nail down though at the large scale. For instance Trump managed to secure the largest tax break in New York history in the 80s by convi
by voxic11 10y ago
This can be very hard to nail down though at the large scale. For instance Trump managed to secure the largest tax break in New York history in the 80s by convincing the government that his buildings for the Uber rich would be very valuable to the city.
- crusso 10y agoThat's a direct example where government power rewarded a crony. Reward for value creation is something that the free market does every day in trillions of transactions.
- sanderjd 10y agoIt also tends to over-reward those who create value by having a strong negotiating position (usually due to coming to the table with lots of capital) and under-reward those who create value through labor. This is better than crony-ism, but it's not at all a panacea.
- crusso 10y agoOver-reward? By what measure? If capital amplifies negotiating power then it means that capital is more important. One who can acquire capital to use in negotiation is using the most leverage to create value. Labor's value is exactly what someone is willing to pay for it.
- sanderjd 10y agoBy the measures of hard work and value creation being discussed in this thread. I'm sure you disagree. I'll try to save some time by stipulating that this is a value judgment, I likely disagree with your disagreement, and I am happy to agree to disagree.