The origin of all wealth is the natural resources of the earth, plus human labor adding to its value. Everything else is a racket.
If you invest in a business, either by loaning your no-account cousin some cash, or by buying stock in a company, your money goes into buying raw materials, investing in physical plant, and paying workers to improve on those materials and facilities through their labor. And yes, the management of that enterprise counts as "labor", if its any good. All management does is provide an administrative and coordinating function, which is certainly a valid function, but only part of the labor value that goes into the final product.
All that labor may generate enough revenue when the product or service is sold for the workers to get paid, the owner to make a profit, and for you to get a nice dividend. That's the way the system should work, although sometimes the business goes south and nobody wins.
There is nothing morally or mathematically wrong with investing in a business enterprise, or for an enterprise to borrow to launch a new venture. In either case, the future market value of the product or service is going backwards in time to bootstrap the creation of the product. Sure, its risky, and sometimes everybody loses, but that's the chance you have to take. Otherwise, we would have to sell the product (or service) before it was manufactured, purely on faith.
So where does that value come from? It is derived from the labor that goes into the raw material to make it a sellable product. All value, all wealth derives from human labor. Even the raw material used to make the product has value only because of the human labor required to locate, extract, refine, accumulate, transport and distribute it.
I don't see where in that whole scheme bitcoin fits in. Things like money, gold, currency, capital, equities etc are just accounting aids. They have no intrinsic value, we just use them to keep score.
Current Events » in reply to I don't get it
Everybody wants something for nothing.
The whole thread (16 posts)
- Cryptocurrencies are crashing all over.
