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Producer surplus creates just as much wealth. The insight that most wealth is created by trade was one of my most mind blowing experiences!
by BurningFrog 1y ago
Producer surplus creates just as much wealth.
The insight that most wealth is created by trade was one of my most mind blowing experiences!
- jongjong 1y agoWealth shouldn't be conflated with currency units or the value of assets which are denominated in currency units, especially in a system where the total number of currency units is not fixed. A lot of economic activities are rewarded simply by virtue of the fact that they found a short path of low-resistance from a public money printer to somebody's bank account. There are many government money printers around the world which can be tapped into. Normal value-creating businesses can't compete with such schemes. Just look at Bitcoin as an example; it uses the same amount of electricity as the nation of Argentina to process a measly 4 transactions per second max (even though there are countless alternatives which are way faster, just as secure and less harmful to the environment). It's worth a lot of money, not worth a lot of value. Helping corrupt dictators to move around their money globally with impunity while baking the planet, does not add value to society; it destroys value.
- BurningFrog 1y agoMoney isn't wealth, but is measured in money units. Simple example: I have a Shmoo that's worth $40 to me and $70 to you. You buy it for $50. I'm now $10 wealthier, and you are $20 wealthier.