Quote:
Originally Posted by Baraka_Guru
More broadly, wealth creation is based on the consumption of goods and services, which are created by a combination of capital and labour.
What ace is referring to, I think, is economic expansion. But economic expansion isn't possible without basic wealth creation through the application of capital and labour.
Again, there is a distinction between some guy with an idea and being able to apply it. Applying ideas, inventions, new technologies require capital and labour.
This "real wealth creation" isn't created out of nothing. It's created out of resources and labour.
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There are circumstances where capital stays the same, labor stays the same, but wealth gets created. A person can come up with a better, more efficient way to do something, creating real wealth, making the "pie" bigger. The result is capital can be redirected or employed more efficiently. The result is labor can be redirected or employed more efficiently.
Certainly as a result of real wealth creation there is increased consumption.
Are we disagreeing on what comes first?
Do you argue that increased consumption leads to real wealth creation?
If it is so basic, clearly state what your view is, rather than telling me I am wrong.