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Well, it is. Thermodynamics. Earth is pretty much a closed system, except for the sun. So for example if you invest $100 in a farm and get a return of 10%, whe
by streetfighter64 14d ago
Well, it is. Thermodynamics. Earth is pretty much a closed system, except for the sun.
So for example if you invest $100 in a farm and get a return of 10%, where does that come from? The nutrients in the soil, the effort expended by the workers, and the power of the sun to turn seeds into food. All value comes either from finite resources in the ground (nuclear, oil, ...), from solar power, or from human effort (work, innovations, etc.)
So can you trace back Nvidia's incredible 10000% return on investment to any of these sources? Which ones?
- Footnote7341 14d agoEconomic value isnt a physical resource being depleted....
- ptx 14d agoBut it seems this "economic value" is often created by depleting actual physical resources (e.g. people's health, clean air and water), usually resources belonging someone other than the person capturing the "value".
- fuzzfactor 13d agoSo many don't want to admit things like that. "Economic value" is great stuff and kind of all-encompassing. But a lot of it is mainly moving money around after wealth has already been created, sometimes generations earlier. To this day the lion's share of "creating wealth" is traceable to natural resources.
- streetfighter64 11d agoCan you explain what economic value actually is, in your view? I think I gave a fairly good explanation of my viewpoint, your reply doesn't add anything as I never claimed anything remotely similar to that "economic value is a physical resource being depleted". What does that even mean?
- chungy 14d agoMoney is created all the time. It is not a zero-sum game.
- someguyiguess 14d agoWhen money is created, the total amount of money in circulation increases, decreasing the value of each unit of money overall. It’s called inflation.
- simianwords 14d agoNo it’s not fixed like that. Total prosperity of world has increased inflation adjusted over 100 years. Why? Surprised basic stuff is now being questioned.
- streetfighter64 9d agoGP didn't claim it was fixed, only that the creation of more money brings inflation. Which is a pretty basic fact. > Total prosperity of world has increased inflation adjusted over 100 years. Why? Clearly, because people have worked to bring value to the world. But, most people actually doing the work see very little of the profits. I often see this argument, "you have access to food, housing, healthcare etc., so that means that the system is working great". But you're missing the fact that me, my parents, and their parents, and their peers, have all worked to create all of that stuff. While simultaneously working to create the private jets and luxury yachts for the 1%. In a more fair system we'd have twice as much prosperity, or work half as hard.
- YetAnotherNick 14d agoIt's not that simple. Of course there is inflation but in the long run in history, real money has increased massively. We have give opportunity of education to almost everyone, abolished slavery, given food and basic medicine to almost everyone. 100 years back having all of these sounded like a perfect world.
- s1artibartfast 13d ago
- simianwords 14d agoIf it’s a fixed pie why do we have more collectively now than 200 years ago? Value also comes from technology which you seem to suspiciously remove
- streetfighter64 11d agoTechnology is human effort in the form of innovation. Technology does not grow from the earth, people create it (often using up our finite resources in order to do so). Bill Gates isn't rich because "technology" made him rich, he's rich because other people's efforts made him rich. > or from human effort (work, innovations, etc.) The only thing "suspicious" here is your lack of reading comprehension.