3 ms·
Not really. The money mostly goes to landlords. VC -> Startup -> Employee -> Landlord
by Reedx 8y ago
Not really. The money mostly goes to landlords.
VC -> Startup -> Employee -> Landlord
- dredmorbius 8y agoTime to relearn the basic classes of economic goods, and their corresponding pricing behaviours: commodities, wages, rents, interest, public goods. Land, monopolies, skills and talent endowments, capital, and power all return rents. Likely risk as we'll. Most of books 1, 2, and 5 of Smith. https://en.wikisource.org/wiki/The_Wealth_of_Nations https://en.wikisource.org/wiki/The_Wealth_of_Nations
- solidsnack9000 8y agoOne point Smith makes is that land rents tend to eat all other forms of revenue over time, since (a) the supply does not increase, (b) the use of land is necessary for every enterprise and (c) over time all the land that can be put to some use is and then it's just about competition over it.
- dredmorbius 8y agoRents are defined as goods or services in which the seller captures not merely costs but consumer surplus.
- solidsnack9000 8y agoSmith talks about land specifically. Not sure where you're going here.
- dredmorbius 8y agoConsumer surplus is a modern definition. It follows from Smith, though somewhat indirectly. https://en.wikipedia.org/wiki/Economic_rent https://en.wikipedia.org/wiki/Economic_rent