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I consider it the beauty of capitalism. People are equally free to create huge value or destroy huge value.

lenerdenator 2y ago
Rarely is value created or destroyed. It's transferred, as it is here. There are a few big exceptions to this. Discovering a new deposit of mineral wealth and the microcomputer revolution drastically speeding up business tasks are examples.
- alexey-salmin 2y ago
  That's like exactly the opposite of how economy works. Taking a great firm and reducing it to zero destroys value. Building a great firm from zero creates it. I personally believe that the failure to understand this is the reason why the political left is so bad at building economies when given a chance. Being obsessed with the fair distribution of value, they overlook the creation and preservation aspect. In the end there's nothing to distribute.
- acchow 2y ago
  Barring rent seeking and other anti-competitive behavior, all net profit is value creation.
  - s1artibartfast 2y ago
    Even rent seeking is value creation, just less than alternatives. No free exchange ever occurs unless the counterparties disagree on value, leading to a net gain post transaction.
    - positr0n 2y ago
      The definition of rent seeking is manipulating the political environment to create new wealth for yourself without creating net wealth for society. The classic example is the owner of a section of river imposing a toll for boats traversing the river. The rent creates value for the owner but exactly the same amount negative value for the rest of society. A toll for a ferry the owner created would be creating wealth. As would developing a resort there. Modern examples of rent seeking are usually related to regulatory capture or housing politics.
akritrime 2y ago
That also begs the question how much of that value is substantial and how much of that is just narrative froth from speculation.
- monero-xmr 2y ago
  All value is subjective. If I’m dying of thirst I will pay anything for a bottle of water.

Rarely is value created or destroyed. It's transferred, as it is here. There are a few big exceptions to this. Discovering a new deposit of mineral wealth and the microcomputer revolution drastically speeding up business tasks are examples.

alexey-salmin 2y ago
That's like exactly the opposite of how economy works. Taking a great firm and reducing it to zero destroys value. Building a great firm from zero creates it. I personally believe that the failure to understand this is the reason why the political left is so bad at building economies when given a chance. Being obsessed with the fair distribution of value, they overlook the creation and preservation aspect. In the end there's nothing to distribute.
acchow 2y ago
Barring rent seeking and other anti-competitive behavior, all net profit is value creation.
- s1artibartfast 2y ago
  Even rent seeking is value creation, just less than alternatives. No free exchange ever occurs unless the counterparties disagree on value, leading to a net gain post transaction.
  - positr0n 2y ago
    The definition of rent seeking is manipulating the political environment to create new wealth for yourself without creating net wealth for society. The classic example is the owner of a section of river imposing a toll for boats traversing the river. The rent creates value for the owner but exactly the same amount negative value for the rest of society. A toll for a ferry the owner created would be creating wealth. As would developing a resort there. Modern examples of rent seeking are usually related to regulatory capture or housing politics.

akritrime 2y ago

That also begs the question how much of that value is substantial and how much of that is just narrative froth from speculation.

monero-xmr 2y ago
All value is subjective. If I’m dying of thirst I will pay anything for a bottle of water.