4 ms·
This seems to conflate the ideas of growth and value. Labor creates some growth but is mostly value. Value is the reallocation of existing wealth. Growth is
by mulmen 4y ago
This seems to conflate the ideas of growth and value. Labor creates some growth but is mostly value. Value is the reallocation of existing wealth. Growth is the creation of new wealth. Both happen when we do (productive) work. Capital needs to get comfortable with the idea that they must "spend money to make money".
- bsedlm 4y agoI'm not sure I follow... value is the realocation of wealth? hmm, surely to realocate wealth has some value, but what's the relation between wealth and value? also, what about rent? what does rent do to wealth? to growth? to value?
- mulmen 4y agoYes, the reallocated wealth is itself previously captured growth. Value is created from wealth when it is reallocated but while it is held no value is created.