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In economics, you aren't necessarily creating wealth just because your final output has value. The value of the final good or service has to be higher than the
by m4nu3l 1y ago
In economics, you aren't necessarily creating wealth just because your final output has value. The value of the final good or service has to be higher than the inputs for you to be creating wealth. I could take a functioning boat and scrap it, sell the scrap metal that has value. However, I destroyed wealth because the boat was worth more.
Even if you are creating wealth, but the inputs have better uses and can create more wealth for the same cost, you're still paying in opportunity cost. So things are more complicated than that.
- azemetre 1y agoThis isn't related to what I was commenting on where the other poster came across as not seeing government by the governed as having economic worth.
- andsoitis 1y agoSynthesizing between you two’s thoughts, extrapolating somewhat: - human individuals create wealths - groups of humans can create kinds of wealth that isn’t possible for a single indovidual. This can be a wide variety of associations: companies, project teams, governments, etc. - governments (formal or less formal) create the playing field for individuals and groups of individuals to create wealth
- azemetre 1y agoThanks for this comment. You definitely crystalized the two thoughts well and succinctly. Definitely a skill I wish I had. :D
- kortilla 1y agoNo, I said it was a requisite to generate wealth, but it does not generate it directly.
- azemetre 1y agoGotcha. Definitely felt like I made that comment a little too rush, especially in the context of all the others as well.