Wellsy wrote:Why are we as a whole wealthier than before?
Wealth is created by innovation, creativity, and providing what the masses need.
Let's say I am the inventor of the computer.
I set up a factory and pay workers to build my computer on an assembly line as per my plans.
I sell the computer to millions of people that feel the price of the computer is acceptable because the can be more productive in their own work.
I collect the money from the computer sales and pay the factory workers who are now able to put food on the table.
The grocery store owners make more money because the factory employees have cash to buy food.
The small business owners that buy my computer become more productive with my computer and they earn more. Many order several computers to be even more productive. They go out and buy other stuff making someone else rich.
In summary:
The guy that invented the computer becomes a billionaire.
His employees make more money and buy stuff. Someone else makes money.
More restaurants open because people have money to spend.
Builders build homes because people want to buy houses.
One of the buyers of the computers decides to write a book and she becomes a billionaire after others buy her book. They buy the book because they think the joy of reading the book is worth the price of the book. Bookstores that sell the book make a small profit.
This is wealth creation due to the creativity and innovation of just one person.
Virtue is more to be feared than vice, because its excesses are not subject to the regulation of conscience.
Adam Smith