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By taking a beat up car worth $200, and buying some parts for $400, and fixing it up and selling it for $1500, you just created $900 for yourself. This is growi
by jjmaxwell4 15y ago
By taking a beat up car worth $200, and buying some parts for $400, and fixing it up and selling it for $1500, you just created $900 for yourself. This is growing the pie. The is not a set amount of wealth in the world.
Think about the creation of entirely new industries. Think of how much would be spent on cell phones today were it
not for the innovation caused by RIM, Motorola and then Apple. Or cloud computing were it not for Amazon, Dropbox ect. These companies create wealth, by creating value for consumers. Banking is a little more complicated, but they provide capital to allow the aforementioned companies to grow and innovate.
- deadmansshoes 15y agoSure, but the $900 dollars would otherwise have gone to buy a car from someone else who fixed up a car or made cars. I can see how reducing the cost of items or services can make more people "wealthy" - such as being able to buy a second car. But reducing costs normally means reducing wages meaning the owners get richer, and the manual jobs disappear.
- jjmaxwell4 15y agoReducing costs can often be accomplished through scale, efficiency, improved logistical delivery. Its not always about reducing wages.