4 ms·
Capitalism works on the fact that different people value things differently. That asymmetry in value allows people to trade things so that I can give up somethi
by imgabe 7y ago
Capitalism works on the fact that different people value things differently. That asymmetry in value allows people to trade things so that I can give up something that I value less in order to get something that I value more.
Perhaps I could sit at home alone and write fragments of Windows kernel code by myself. These would be of very little value to me. However, they might be of tremendous value to Microsoft who has the whole rest of the Windows kernel and licensing agreements to distribute it and a sales staff to sell it and etc and etc and etc.
So I trade my fragments of Windows kernel code which do not benefit me very much to Microsoft. In exchange Microsoft gives me money, which is much more useful to me than code fragments because I can use it to buy food and shelter. I have actually received something that is of more value to me than the thing I gave up. The code fragments on their own could not have gotten me food or shelter.
Microsoft on the other hand, gave up money that is of less value to them than these code fragments. They can use the code fragments to create more value than they could with the money by combining them with their other assets. Value is relative, not absolute. Nothing is being stolen by paying someone a price they agree to for something, just because you have a better way of making use of it than they do.