Wealth Creation?

[manifold]

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

 

[Iriemon]

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

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

 

[manifold]

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

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

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

 

[Iriemon]

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

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

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

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.

 

[manifold]

But what was the zidget before it was a zidget? Surely it wasn't fashioned from thin air?

 

[Mad Scientist]

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

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!

 

[Iriemon]

But what was the zidget before it was a zidget? Surely it wasn't fashioned from thin air?

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.

 

[code1211]

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

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.

 

[mash107]

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.

 

[xsited1]

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

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! )

 

[neurosport]

Iriemon is right.

Wealth can be created. If that wasn't the case then where did all of the wealth come from ?

Typically producing wealth will require a successful business in a free and undistorted market.

Production in itself does not guarantee wealth is created. Subsidized production ( General Motors ) can very well destroy wealth instead.

 

[neurosport]

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.

thats a socialist view. the view that as long as people are put to work we are creating wealth.

but its an oversimplification. any business not market justified ( for example one run by the government ) is not guaranteed to create wealth - it may or it may not.

building bridges to nowhere may be wealth creation or it may be wealth destruction.

wealth creation is maximized when government spending is minimized.

 

[mash107]

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.

thats a socialist view. the view that as long as people are put to work we are creating wealth.

but its an oversimplification. any business not market justified ( for example one run by the government ) is not guaranteed to create wealth - it may or it may not.

building bridges to nowhere may be wealth creation or it may be wealth destruction.

wealth creation is maximized when government spending is minimized.

Well, obviously it has to be something the market/consumers want. If you're taking sand and creating silicon and no one anywhere wants that silicon, that's a destruction of wealth.

 

[Old Rocks]

But what was the zidget before it was a zidget? Surely it wasn't fashioned from thin air?

If wealth could only be transferred, we would still be trading in shells and skins. Of course wealth can be created, our whole fabric of modern civilization is created.

 

[editec]

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

Wealth is created every time a person does work that creates a good or service.

Labor is the source of all human wealth.

A gold nugget is NOT wealth until somebody actually picks it up.

 

[Old Rocks]

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

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! )

OK, can't resist knocking liberals? Did you ever bother to read what liberals really say concerning the creation of wealth?

 

[editec]

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

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 complete bullshit.

That's the reason they are so interested in wealth redistributed.

No, they're interested in distributing the wealth that the workers make back into the pockets of the creators of wealth, you foolish person, you.

Obviously, that's wrong. Wealth can most certainly be created.

I'd go even further than that -- ALL wealth is created by the hand or mind of man.

Wealth is a CONCEPT, not a thing.

 

[Old Rocks]

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

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! )

Another point. Redistribuition of wealth. An inventor invents a device. A manufacturer builds the factory to produce it. People labor to make it. Who makes the most off of it. None of the above. The person that makes the most money off of it is the capitalist that has the money to invest. While this person is a neccessary step in the process, that is a redistribution of wealth. Distributed from those who are actually creating to someone that has little to do with the creation.

 

[editec]

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

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! )

Another point. Redistribuition of wealth. An inventor invents a device. A manufacturer builds the factory to produce it. People labor to make it. Who makes the most off of it. None of the above. The person that makes the most money off of it is the capitalist that has the money to invest. While this person is a neccessary step in the process, that is a redistribution of wealth. Distributed from those who are actually creating to someone that has little to do with the creation.

Yup, that's often true.

Not that the capitalist isn't entitled to a serious share of the wealth, but right now our society seems to think (thanks to free trade I note) that their contribution is so much more important that anyone elses, that they really think its okay if the rest of us go broke while they become masters of the universe.

Nothing new about that attitude.

Kings and peers of the realms always had that arrogant attitude.

 

[xsited1]

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

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! )

OK, can't resist knocking liberals? Did you ever bother to read what liberals really say concerning the creation of wealth?

Yes. But your definition of liberal and my definition may be two different things.