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> The value created is lost because it’s no longer used to improve the firm that created the value. It’s redistributed to various yacht companies and the like.

> The value created is lost because it’s no longer used to improve the firm that created the value. It’s redistributed to various yacht companies and the like. It's not "redistributed". There aren't parental figures just apportioning money as they see fit. People are spending money on what they find valuable. Partly that's on the firm. Partly that's on salaries, particularly in places where creating competitors is easy and the incentives are good for people to want to take that risk. Partly on maintenance and the like. Then a chunk of the next lot must be given to the government or directors will be locked in jail. Finally, out of what's left, comes the money you're talking about. That can be reinvested, or pulled out. It doesn't "disappear".

redcobra762 3y ago
It disappears from the industry that created the value, the industry arguably best poised to increase productivity, was my point. Yachts and fancy cars are part of the economy too, but they’re not the best place for resources to go if you want to increase innovation and productivity.
- robertlagrant 3y ago
  Yes they are. Things are often invented in fancy cars that get market-tested (at the rich customer's expense) and ones that are popular come to the mass market once the kinks have been ironed out. Also, people who work on yachts buy cars.
  - redcobra762 3y ago
    Yachts and fancy cares are the best industry in the world for resources to go in order to maximally spur overall economic innovation and productivity?
    - robertlagrant 3y ago
      > Yachts and fancy cares are the best industry in the world for resources to go You're doing a trick of pretending that an example that's been successfully countered wasn't just an example, but the only thing in question. Obviously CEOs spend on various things, as do we all. > in order to maximally spur overall economic innovation and productivity If I buy a Mars Bar I'm not putting my money into what's going to maximally spur overall economic innovation and productivity. You're creating a ludicrously high bar for their spending, that you're now pretending is all on yachts and cars, to clear - one which most people's spending also wouldn't clear, if we even knew what would clear it.

redcobra762 3y ago

It disappears from the industry that created the value, the industry arguably best poised to increase productivity, was my point. Yachts and fancy cars are part of the economy too, but they’re not the best place for resources to go if you want to increase innovation and productivity.

robertlagrant 3y ago
Yes they are. Things are often invented in fancy cars that get market-tested (at the rich customer's expense) and ones that are popular come to the mass market once the kinks have been ironed out. Also, people who work on yachts buy cars.
- redcobra762 3y ago
  Yachts and fancy cares are the best industry in the world for resources to go in order to maximally spur overall economic innovation and productivity?
  - robertlagrant 3y ago
    > Yachts and fancy cares are the best industry in the world for resources to go You're doing a trick of pretending that an example that's been successfully countered wasn't just an example, but the only thing in question. Obviously CEOs spend on various things, as do we all. > in order to maximally spur overall economic innovation and productivity If I buy a Mars Bar I'm not putting my money into what's going to maximally spur overall economic innovation and productivity. You're creating a ludicrously high bar for their spending, that you're now pretending is all on yachts and cars, to clear - one which most people's spending also wouldn't clear, if we even knew what would clear it.