ECONOMICSmatt

I believe in free market economics. The world is too complex for people to try to control and predict outcomes of that control. Central planners in government offices cannot allocate resources as effectively as the crowd. In a free market system the government gets out of the way and people and businesses fill consumer needs based on supply and demand.

How Wealth is Created

Ingredients worth $5 can be used to bake a cake worth $15. Materials & land worth $300k can create a home worth $500k. Devs & computers that cost $500k can build software worth $1 billion. The wealth isn’t stolen or exploited. Value is created from nothing by builders.

What About Theft of Labor?

Labor isn’t stolen, it’s paid for. Labor should be a voluntary agreement between employer and employees. The socialist idea is that labor is stolen and this is what makes employers wealthy. This is incorrect. Entrepreneurs and employers are compensated for risk. They must pay wages even if the business loses money.

There’s an incorrect narrative that wealthy people get their wealth by exploitation or by taking it from others. That’s wrong. Wealth & value can be created from nothing through risk & work in providing solutions. Wealth builders aren’t zero sum, they are win/ win.

Builders take raw materials or blank lines of code & turn it into products & services that people want. This takes risk. Your cake might burn or the code might not work. Risk is what entrepreneurs are compensated for. Risk & labor are two different things that pay differently.