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I think it's useful because it gets you thinking about which category various things fall into, and how they're connected. For example, business growth is usua
by mikeash 7y ago
I think it's useful because it gets you thinking about which category various things fall into, and how they're connected.
For example, business growth is usually wealth creation. We shouldn't think badly of successful businesses (unless they're taking advantage of externalities or similar). However, pay is wealth allocation. Pay going to executives versus workers versus charity versus taxes is a zero-sum game, but we're OK (for certain values of "we") with executives getting a huge slice of that pie because we're pretty sure it helps drive the wealth creation side of things by providing incentives.
It gets you thinking about what incentives you need, what sort of behavior they drive, what sort of behavior we want to drive, etc.
Far more useful and interesting than the typical story of "wealth is not a zero-sum game, rich people don't take anything away from poor people, The End."