The Creation Of Wealth

[PostmodernProphet]

if at the end of the day I have money that I did not have in the morning, I have produced it.......

[Old Trapper]

If you are utilizing your land to provide a service, such as lodging, then you are producing a service. It's not really complicated unless you are a leftist.

Could not grasp what they are saying so you resort to your fantasy world. If you don't have someone to change the sheets how many customers will you have?

It really is that simple unless you are a low IQ right winger.

[Rune]

at least you have a viable idea for a change...about time.

GDP IS wealth -goods and services produced by an economy. You can't discuss wealth creation without it.

Your "parasitical" sounds like it's limited to a mercantilism policy of gold/ore and natural resources only being 'wealth'

It isn't my idea you moron, it is basic macroeconomics.

GDP is simply a measure of effort and has nothing to do with wealth creation.

"There is a bar to all knowledge...that bar is contemp prior to investigation."

If you are unfamiliar with a concept, at least research it before you condemn the messanger. Or, remain a fool, your choice.

[CFM]

Did I mention GDP? Idiot
I am talking about actual wealth, not a verbal construct.

As stupid as you are, I am not surprised you don't know what a parasite is, but you are one. Leeches and mosquitoes are examples of parasites.

Never seen anyone as proud of his ignorance as you.

You are a parasite. How's that for knowing?

[Old Trapper]

if at the end of the day I have money that I did not have in the morning, I have produced it.......

Money is simply a symbol of a standard of exchange. Of what value is your money when there is nothing exchange it for? If the farmer were to quit producing a crop, or the steelworker were to quit producing steel, etc., how much is your money worth?

Do you know what "fiat currency" is?

[PoliTalker]

Hello Old Trapper,

Since there seems to be some confusion about the creation of wealth I have decided it is a topic that needs to be discussed so the more ignorant among us can actually grasp who it is that creates the=is wealth, and who it is that is profiting from the labors of others to the extent that they have become pariahs in our world. We can start here.

https://www.theguardian.com/commenti...nomy-parasites

So entrenched is this assumption that it’s even embedded in our language. When economists talk about “productivity”, what they really mean is the size of your paycheck. And when we use terms like “welfare state”, “redistribution” and “solidarity”, we’re implicitly subscribing to the view that there are two strata: the makers and the takers, the producers and the couch potatoes, the hardworking citizens – and everybody else.

In reality, it is precisely the other way around. In reality, it is the waste collectors, the nurses, and the cleaners whose shoulders are supporting the apex of the pyramid. They are the true mechanism of social solidarity. Meanwhile, a growing share of those we hail as “successful” and “innovative” are earning their wealth at the expense of others. The people getting the biggest handouts are not down around the bottom, but at the very top. Yet their perilous dependence on others goes unseen. Almost no one talks about it. Even for politicians on the left, it’s a non-issue.

To understand why, we need to recognise that there are two ways of making money. The first is what most of us do: work. That means tapping into our knowledge and know-how (our “human capital” in economic terms) to create something new, whether that’s a takeout app, a wedding cake, a stylish updo, or a perfectly poured pint. To work is to create. Ergo, to work is to create new wealth.

But there is also a second way to make money. That’s the rentier way: by leveraging control over something that already exists, such as land, knowledge, or money, to increase your wealth. You produce nothing, yet profit nonetheless. By definition, the rentier makes his living at others’ expense, using his power to claim economic benefit.

This is an interesting example of what the article speaks of, or part of it anyway:

http://inthesetimes.com/working/entr...porate_welfare

Here is another part of the Amazon scam you will not hear about:

http://inthesetimes.com/article/2157...pe-cities-data

In France, the government fears the people. If some policy is not working the people might go on a general strike. This is noticed by government, which usually acts to quell the discontent, because if it doesn't, it gets replaced.

In the USA, the people fear the government. This is wrong, because government is our friend. But people fear the government because they wrongly blame government for our problems which are mainly caused by rich and powerful greedy people who direct government to do the things THEY want done. Let the rich puppet-masters pull the strings, let government take the heat.

Part of the reason the USA government does not fear the people stems from something capitalism did. Capitalism tied health care to work. There are no general strikes in the USA because nobody wants to get fired for not showing up. Workers are afraid to strike, afraid to lose their health care, afraid to be unable to find another job without a good reference from the old one.

The creation of wealth, USA style, involves creating a system where the workers are afraid to stand up for their own rights, afraid of the power of the big corporations, and blaming government out of frustration.

[PostmodernProphet]

Money is simply a symbol of a standard of exchange. Of what value is your money when there is nothing exchange it for? If the farmer were to quit producing a crop, or the steelworker were to quit producing steel, etc., how much is your money worth?

Do you know what "fiat currency" is?

I know that if I have money, "YOU didn't build that".......if the farmer has no crop, he cannot rent my farmland.......if the steel worker quits working he cannot hire my services........

[Rune]

If most people don’t earn their wealth how do they get it? Why do so many suckers go to work each day? What’s the secret to be rich and avoid it?

The secret to being rich is very simple, save money.
Live below your means.

[PoliTalker]

Hello Old Trapper,

Since there seems to be some confusion about the creation of wealth I have decided it is a topic that needs to be discussed so the more ignorant among us can actually grasp who it is that creates the=is wealth, and who it is that is profiting from the labors of others to the extent that they have become pariahs in our world. We can start here.

https://www.theguardian.com/commenti...nomy-parasites

So entrenched is this assumption that it’s even embedded in our language. When economists talk about “productivity”, what they really mean is the size of your paycheck. And when we use terms like “welfare state”, “redistribution” and “solidarity”, we’re implicitly subscribing to the view that there are two strata: the makers and the takers, the producers and the couch potatoes, the hardworking citizens – and everybody else.

In reality, it is precisely the other way around. In reality, it is the waste collectors, the nurses, and the cleaners whose shoulders are supporting the apex of the pyramid. They are the true mechanism of social solidarity. Meanwhile, a growing share of those we hail as “successful” and “innovative” are earning their wealth at the expense of others. The people getting the biggest handouts are not down around the bottom, but at the very top. Yet their perilous dependence on others goes unseen. Almost no one talks about it. Even for politicians on the left, it’s a non-issue.

To understand why, we need to recognise that there are two ways of making money. The first is what most of us do: work. That means tapping into our knowledge and know-how (our “human capital” in economic terms) to create something new, whether that’s a takeout app, a wedding cake, a stylish updo, or a perfectly poured pint. To work is to create. Ergo, to work is to create new wealth.

But there is also a second way to make money. That’s the rentier way: by leveraging control over something that already exists, such as land, knowledge, or money, to increase your wealth. You produce nothing, yet profit nonetheless. By definition, the rentier makes his living at others’ expense, using his power to claim economic benefit.

This is an interesting example of what the article speaks of, or part of it anyway:

http://inthesetimes.com/working/entr...porate_welfare

Here is another part of the Amazon scam you will not hear about:

http://inthesetimes.com/article/2157...pe-cities-data

I love "In These Times."

Great magazine.

I agree with all of this.

Workers create wealth. Capitalists take it.

[Rune]

You are a parasite. How's that for knowing?

No, dipshit. I create wealth using four of the five means available.
I manufacture, I fish, I farm and I engage in forestry.

Of all people, I am the least parasitic possible.
You, of course are just a venom slinging moron.

[Tkaffen]

You are right labor has to keep the system going, however someone had to start the process.

Wealthy Henry Ford was the inventor and innovator. He created jobs. He paid wages. Employees spend those wages creating other jobs.

The wealthy railroad barrons laid track and cities sprung up. The railroad barrons had the money and the foresight. There actions created jobs.

Let’s talk about someone more current. That rich scum Bill Gates. Gates started Microsoft in 1975. He hired people as his company developed. He now has 131,000 employees world wide. Those employees are paid. They spend their money creating other jobs. These employees keeps the company growing and in existence. That’s a good thing for them.

The story is the same with Walton and Bezos.

It would seem these innovators deserve their wealth.

I hope this simple economics lesson helps the more ignorant among us.

[CFM]

No, dipshit. I create wealth using four of the five means available.
I manufacture, I fish, I farm and I engage in forestry.

Of all people, I am the least parasitic possible.
You, of course are just a venom slinging moron.

You claim to do those things. Interesting how all of you that claim to do so much refuse to prove it.

[Rune]

if at the end of the day I have money that I did not have in the morning, I have produced it.......

No you didn't, you just took it from someone else.
You are a perfect example of both a parasite and a rentier.

[Old Trapper]

GDP= sum total of goods and services in an economy. work produces wealth, but so does investing.
wealth creation by investing is moving money around to accomplish business expansion or start ups.

The renter example above provides housing for the tenet -the tenet works to pay the rent and buy food etc.
So renting facilitates wealth creation -and renting mean more housing is built as that housing stock would remain dormant without a renter.
By keeping housing in demand, that eventually means more housing has to be built -wealth creation by tangible goods and services.

Socialism retards the movement of money and the creation of wealth -both needed to keep an economy moving.
It retards the desire to innovate as the intellectual property is either controlled by the state or so highly taxed the R&D $$ used ( paid out by the inventor) is no longer worth the risk because the reward is gone.

Money has to move in an economy. I agree piling it up in a bank and not investing it doesn't grow wealth.
except even that gives the bank money to use for loans and other investment

How about stocks? again the stock buyer is taking a risk that his investment earns money.
But the investment also provides capital for the company to use to start up/grow

Not that there isn't abuse in these system, which is why we regulate.

good topic

I will go into your regurgitated spat in a little bit. But for now see if your wee little mind can grasp this concept.

Let us say that a plague hits the country, and all millionaires, and billionaires, die. How much wealth will then be created? In fact, it will be replaced.

Now, let us say that the same plague hits the country, and it kills off all of those who are paid less then 15 dollars an hour. How much wealth will be created? None since there is no one there to do the work.

[Tkaffen]

Not all Mosquitoes are a parasite.

Did you know that mosquitoes kill 750,000 people a year.