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>This assumes that wealth is a zero-sum game, so it can be traded around but not created. >And it very much is. You may be confusing wealth with money, which
by agonz253 13y ago
>This assumes that wealth is a zero-sum game, so it can be traded around but not created.
>And it very much is.
You may be confusing wealth with money, which is in fact a zero-sum game. Wealth, on the other hand, can be created and it's been constantly created all the time throughout history. The section on the Pie Fallacy in this article may help clarify it: http://paulgraham.com/wealth.html http://paulgraham.com/wealth.html
- dragonwriter 13y ago> You may be confusing wealth with money, which is in fact a zero-sum game. Wealth, on the other hand, can be created So can money. Neither wealth nor money is zero-sum.
- fspeech 13y agoMoney as a form of credit is zero sum. For example on the other side of every US dollar is debt security (government or mortgage) that the Fed has bought. Money only has meaning if someone (maybe indirectly) owes you that money. But it is correct that absolute wealth (or what economists call utility) is not zero sum. To focus on relative wealth is to invite unhappiness that no one or system can help. We don't live in Lake Woebegone.
- collyw 13y agoUnfortunately money can be created for some by restricting access to wealth. Restrictions on housebuilding is a perfect example in the UK with its dysfunctional housing market. The older generations are happy to have their house prices artificially inflated by not allowing enough homes to be built for the younger generations and immigrants. Keeps rents and prices high while not creating any wealth.
- kamaal 13y agoYes, wealth can be created. But creation of wealth isn't uniformly distributed, And beyond all it is a zero sum game at constant points in time.