Thursday, March 5, 2009

Wealth.

Wealth is real capital, the result of real work. You dig gold out of the ground (primary production). The goldsmith makes the lump more desirable (added value). The teamster hauls it (transport). The store owner markets it to those who want and can afford it (distribution).

Writing down some numbers on a piece of paper, and saying that's how much wealth you have, this will only work if you can convince other people that your paper is worth something (fraud).

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