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To the owners of the other buildings, I suppose, they own a more scarce good now. Also, capital destruction give a chance for building again, and it's building
by RobertoG 10y ago
To the owners of the other buildings, I suppose, they own a more scarce good now.
Also, capital destruction give a chance for building again, and it's building again that you can extract value and make a profit.
- philh 10y agoAt most a portion of the value of the building has been redistributed. Some of it has just plain been destroyed. Also, capital in its undestroyed form can typically be used to extract value and make a profit. If that weren't true, there'd be little value and profit in building it in the first place. For example, a building can be used to provide people warmth and shelter in exchange for money. That's why the owner desires to own it, and that's why the owner (or someone down the chain) is willing to pay other people to build it.