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I honestly don’t understand how you believe this to be a reasonable response. It does sound like a bad faith argument, an attempt at ad hominem. When an entity
by Swenrekcah 2mo ago
I honestly don’t understand how you believe this to be a reasonable response. It does sound like a bad faith argument, an attempt at ad hominem.
When an entity operates in an area but optimises the financial structures in such a way as to siphon all the profits out to another area, that is extracting value that used to remain in the area.
That service or goods are provided has no bearing on the matter.
- bko 2mo agoAn entity provides a service to people that necessarily produces a consumer surplus. Say you pay $2 for a cup of coffee, you obviously value it at least $2 otherwise you wouldn't buy it, but likely more. Suppose you value it at $3 (i.e. the company could charge up to $3 and you would pay), by allowing the entity to sell it to you at the market rate of $2, they created $1 surplus value to you. The same works on the producer side. It typically costs them less than the market price to produce the product. This is basic economics and kind of wild I have to explain.
- Swenrekcah 2mo agoThis is firstly not a response to the value extraction issue. Secondly, you don’t need to explain this here. Rather read up better, because this theory requires a fair market which fails when some participants can avoid taxes.
- bko 2mo ago[dead]