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Well, it is. Thermodynamics. Earth is pretty much a closed system, except for the sun. So for example if you invest $100 in a farm and get a return of 10%, whe
by streetfighter64 4d ago
Well, it is. Thermodynamics. Earth is pretty much a closed system, except for the sun.
So for example if you invest $100 in a farm and get a return of 10%, where does that come from? The nutrients in the soil, the effort expended by the workers, and the power of the sun to turn seeds into food. All value comes either from finite resources in the ground (nuclear, oil, ...), from solar power, or from human effort (work, innovations, etc.)
So can you trace back Nvidia's incredible 10000% return on investment to any of these sources? Which ones?
- Footnote7341 4d agoEconomic value isnt a physical resource being depleted....
- ptx 4d agoBut it seems this "economic value" is often created by depleting actual physical resources (e.g. people's health, clean air and water), usually resources belonging someone other than the person capturing the "value".
- fuzzfactor 4d agoSo many don't want to admit things like that. "Economic value" is great stuff and kind of all-encompassing. But a lot of it is mainly moving money around after wealth has already been created, sometimes generations earlier. To this day the lion's share of "creating wealth" is traceable to natural resources.
- chungy 4d agoMoney is created all the time. It is not a zero-sum game.
- someguyiguess 4d agoWhen money is created, the total amount of money in circulation increases, decreasing the value of each unit of money overall. It’s called inflation.
- s1artibartfast 4d agoOnly when more money is created than production increases. If money grows faster than goods for consumption, then buyers bid up price resulting in inflation.
- simianwords 4d agoNo it’s not fixed like that. Total prosperity of world has increased inflation adjusted over 100 years. Why? Surprised basic stuff is now being questioned.
- YetAnotherNick 4d agoIt's not that simple. Of course there is inflation but in the long run in history, real money has increased massively. We have give opportunity of education to almost everyone, abolished slavery, given food and basic medicine to almost everyone. 100 years back having all of these sounded like a perfect world.
- simianwords 4d agoIf it’s a fixed pie why do we have more collectively now than 200 years ago? Value also comes from technology which you seem to suspiciously remove