Austrian economists would tell you wealth is being destroyed in the diagram. It should just be labeled "crime" instead.
Also i'm sure the tangled corrupt mess of industries is convulsing in Argentina in the face of real reforms. That shouldn't surprise anyone.
Also i'm sure the tangled corrupt mess of industries is convulsing in Argentina in the face of real reforms. That shouldn't surprise anyone.
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> Evererything is a standard exchange of good/services, weallth is only moved
In the example above, a manhole cover had been created talking raw resources and converting it into a manhole cover which has a value (what someone is willing to pay) above the cost of production and cost of resources. This created wealth.
Melting it down reduced it to the resources again and resulted in money for the thief but an overall loss of total wealth. Wealth was destroyed.
In the example above, a manhole cover had been created talking raw resources and converting it into a manhole cover which has a value (what someone is willing to pay) above the cost of production and cost of resources. This created wealth.
Melting it down reduced it to the resources again and resulted in money for the thief but an overall loss of total wealth. Wealth was destroyed.
> The manhole itself has no inherent extra value over its material outside of its context.
Yes.
> Melting it down is money for the thief, then for the drug dealer, but also money for the scrapper, the ironworks, the miners providing coal to the ironworks.
Ok, so let's build a giant manhole cover factory for the purpose of dumping them in town so they can be stolen and melted back down and the cycle can power the economy.
Yes.
> Melting it down is money for the thief, then for the drug dealer, but also money for the scrapper, the ironworks, the miners providing coal to the ironworks.
Ok, so let's build a giant manhole cover factory for the purpose of dumping them in town so they can be stolen and melted back down and the cycle can power the economy.