top of page
Writer's picturedavidthecat

The Economy According to Ghosts, 2

This is really simple. Wealth is created when something changes form to be worth more than the sum of its parts.


In our oversimplified craft business, the frames were worth more than the sticks found in the woods. The three craftsmen used their labors and skills to create worth. So what about the others? They enabled wealth.


Moneywise, two by fours are worth more than felled trees. A house frame is worth more than a stack of two by fours. Etc. The crew who built the houses created wealth. The developer who hired the different crews and arranged to have utilities brought in, that person enabled wealth creation. The realtor enabled getting the houses to the people who ultimately use them. They didn't create the wealth.


So this is where it gets tricky. How do you decide what someone's services are worth? We need all these people. A busy craftsman needs galleries to show their works. Accountants, lawyers, salesmen, they all serve a function. Many of those people work long hours. Nobody's denying their efforts. But in providing those services, they are taking a share of what someone else created. And when you have laborers not making enough to live on, the top is taking too much.

4 views0 comments

Recent Posts

See All

Unveiling

Comments


bottom of page