That's a good article. It has a long introduction that resembles libertarian twaddle, but then Section V brings it home to tie the knot in a way most econ 101 libertarians ignore.
If you make money "squarely" as described in I-IV, then you have created some value. Cashing out in section V is simply consuming that value.
All we can say (given the assumptions in I-IV) is that the person was a net positive (or zero) for the Congolese economy.
The technical mistake that the author makes is not realizing that adding value to the Congolese economy means increasing the total amount of physical wealth in the economy. When the person cashes out their yacht, they are simply exchanging cash for the physical wealth they helped create.
I don't think you can logically say that I-IV are "libertarian twaddle" and that V "brings it home", because V is predicated on I-IV being true. If you're interested in the theoretical basis behind "econ 101" I suggest you look into general equilibrium theory.
It ignores the fact that, for every transaction that was made, the other side also made a profit. Saying that the man is time-shifting the grain is equivalent to saying that the farmer is time-shifting money.
On the average, profit is half of added value. Spending half of added value doesn't "almost perfectly cancel out all the good you did".
If you make money "squarely" as described in I-IV, then you have created some value. Cashing out in section V is simply consuming that value.
All we can say (given the assumptions in I-IV) is that the person was a net positive (or zero) for the Congolese economy.
The technical mistake that the author makes is not realizing that adding value to the Congolese economy means increasing the total amount of physical wealth in the economy. When the person cashes out their yacht, they are simply exchanging cash for the physical wealth they helped create.
I don't think you can logically say that I-IV are "libertarian twaddle" and that V "brings it home", because V is predicated on I-IV being true. If you're interested in the theoretical basis behind "econ 101" I suggest you look into general equilibrium theory.