Originally posted by dadudemon
Pretend you buy a huge plot of land. You build something, with your bare damned hands, from the materials around you. You just increased the value of the land by more than you put into it. You literally became wealthier just by changing the conditions of your assets. That is similar to creating wealth from thin air. True, that you paid for the materials and the land. The whole is greater than its parts. (My Father in law builds his own damn houses. I lol'd when he told me he did....but he just buys land, the materials, and builds it...like a friggin' one man construction crew.)Now, that is one example. I'm sure that there are many examples similar through invention or service ideas...but those rely on currenty a bit too much to get the idea across. Also, new wealth is consistantly being added to the system..which is why it isn't a "zero sum" system.
But that wealth isn't in the system until he tries to sell it at which point it does get subsumed into the zero-sum game. No one can pay more for the house than already exists and he cannot sell it if he asks for more.
Imagine there are two people in the universe and each has an equal amount of money:
Alic builds a house. She asks for money to let Bob buy it. If she requests more money than Bob has the house will never sell because the value she's looking for doesn't exist.
If we add Carol to the mix then Bob can ask Carol for money to buy the house from Alice. But still no new value is created because if Alice asks for more than Bob and Carol have combined the house will never sell.
The same thing extends to any finite number of people.