Russ Nelson on Speculation WRT PG's "Mind the Gap" Essay(blog.russnelson.com) |
Russ Nelson on Speculation WRT PG's "Mind the Gap" Essay(blog.russnelson.com) |
While we're on the subject: one thing has always bothered me about that definition of wealth. What if you make people want what you're selling? According to your definition, if politicians brainwash two nations into going to war, they're creating wealth. That doesn't seem right.
For the theses of your essays this doesn't matter, of course, but it's still interesting.
All of these things provide services that allow others to be more effective.
For example, a law against breach of contract makes you more likely to hire someone you don't know well. That person gets a job, you get an employee, so you're both better off. As long as this benefit is greater than the cost of enforcing the law, that law has created wealth.
I recommend Law's Order by David Friedman for a whole lot more on this subject. It's a fascinating introduction to the application of economics to law.