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<p>[QUOTE="fatima, post: 1129219, member: 22143"]Your example shows how "expression of wealth" can be shifted amongst parties but it is not an example of a creation of wealth. On your specific point of the $6 hotdog, I would contend the total cost to sell that hotdog at that place at that point in time was very high. After all it's being sold in a multimillion dollar facility which consumed a great deal of a society's resources in it's construction. it's certainly not as effective as selling a hotdog in a trailer on the side of the street. </p><p><br /></p><p>The manufacturing of a hotdog, where the wealth is created, includes the delivery to the party that will consume it. Otherwise the hotdog has no value. From this perspective, it doesn't matter if it is sold in a $500 stand or a $500M sports facility. The difference is the party in the $500M facility is paying a portion of his hotdog money for the cost of the venue. The wealth created by the production of the hotdog, however is exactly the same. </p><p><br /></p><p>The mistake that economists make all the time is in forgetting this distinction. This is how the USA ended up getting rid of item 3 on my list because due to the belief that wealth can be created simply by moving the expressions of wealth between parties.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1129219, member: 22143"]Your example shows how "expression of wealth" can be shifted amongst parties but it is not an example of a creation of wealth. On your specific point of the $6 hotdog, I would contend the total cost to sell that hotdog at that place at that point in time was very high. After all it's being sold in a multimillion dollar facility which consumed a great deal of a society's resources in it's construction. it's certainly not as effective as selling a hotdog in a trailer on the side of the street. The manufacturing of a hotdog, where the wealth is created, includes the delivery to the party that will consume it. Otherwise the hotdog has no value. From this perspective, it doesn't matter if it is sold in a $500 stand or a $500M sports facility. The difference is the party in the $500M facility is paying a portion of his hotdog money for the cost of the venue. The wealth created by the production of the hotdog, however is exactly the same. The mistake that economists make all the time is in forgetting this distinction. This is how the USA ended up getting rid of item 3 on my list because due to the belief that wealth can be created simply by moving the expressions of wealth between parties.[/QUOTE]
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