Wealth Creation?

Discussion in 'Economy' started by manifold, Apr 16, 2009.

  1. manifold
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    manifold Diamond Member

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    Can wealth really be "created?" or can it really only be transferred?

    :eusa_think:
     
  2. Iriemon
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    Iriemon VIP Member

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    Sure it can be created. Create a product or service more valuable than the cost to create it and you've created wealth.
     
  3. manifold
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    manifold Diamond Member

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    Are you sure? How is this not merely transferring wealth away from those that buy the product or service?
     
  4. Iriemon
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    Iriemon VIP Member

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    Because it is something that you created that didn't exist before. Who said anything about transferring? But ok let's take a simple example.

    A has one widget. B has nothing. A+B total wealth equals one widget.

    B creates a zidget. A and B trade. Now A+B total weath equals one widget + one zidget. Wealth has been created. The total wealth of A+B are greater because of what B created.
     
  5. manifold
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    manifold Diamond Member

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    But what was the zidget before it was a zidget? Surely it wasn't fashioned from thin air?
     
  6. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Well if wealth can't be created and lost then can someone tell me why the economy expands and contracts? If there is only a finite supply of wealth there would be less of it to go around as the population increases and our standard of living would only go down as a result.

    I love your avitar by the way! :happy-1:
     
    Last edited: Apr 16, 2009
  7. Iriemon
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    Iriemon VIP Member

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    No. It doesn't matter what it was created from, as long as the cost of the parts doesn't exceed the newly created part or service.
     
  8. code1211
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    code1211 Senior Member

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    This is an easy one. A couple million Native Americans living on the plains in teepees. Fast forward to the richest country in history. That's wealth creation.
     
  9. mash107
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    mash107 Active Member

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    The taking of sand and making it into CPUs... that's wealth creation.

    Anything where a value added process is taking place.

    Sand > Silicon > Wafer > IC > Circuit > System > ???

    Every step is a wealth creating step, where everyone involved benefits.
     
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  10. xsited1
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    xsited1 Agent P

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    Scarcity. Now there's an interesting topic. If you are a modern-day liberal, there is only a finite amount of wealth in the world so you would believe that it can only be transferred. That's the reason they are so interested in wealth redistributed. Obviously, that's wrong. Wealth can most certainly be created. In my field, we do it all the time by creating computer chips out of silicon, metals and plastic. Want more wealth? Just create more chips. The same applies to just about everything else you can manufacture.

    (Guess I should've read Mash's post above first! :thup:)
     
    Last edited: Apr 16, 2009

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