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by WalterBright
414 days ago
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> the wealthy holding the money means less money to go around to everyone else Wealthy entrepreneuers created their wealth, it was not transferred to them. It does not reduce the amount of money elsewhere. The wealthy do not "hoard" wealth, either. They invest it. All of it. Even checking accounts are not hoarded wealth, because the money you put in it is loaned out by the bank (less the reserve requirements). |
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Everything relies on thousands of other things. Products and services are huge graphs that nobody truly understands and that span hundreds of years. How much is created, and how much is reused? Hard to say.
At least some of the money is taken via exploitation. For example, if you opt to outsource product X to some third-world country and you drop labor cost 10%, and that in turn grows your company, you did not "create" that growth. You systematically stole it.
Another example we see a lot today is cutting quality. A lot of goods today are produced more efficiently, but not as much as you may think, because some of the productivity gains is simply pseudo-monopolies using their market dominance to cut quality without recourse. It's just human nature that we can't perceive a, say, 1% cut in quality. But if you cut 1% every year for half a century, then congratulations, you "created" a bunch of wealth. But you didn't actually create anything.