Matt1970
Lifer
- Mar 19, 2007
- 12,320
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Each step of the way we take something that was of less value (grain) into something other people want, creating value. That is how wealth is created. It's true, it's not very much wealth, but with enough sandwiches you have something like McDonald's, a mutli-million dollar company!
Ahh, you seem to have the right idea (taking one item and doing something to it to increase it's value) you just used a poor example, the food industry. In your example the sandwich was probably eaten and therefore removed from the market. The guy who made the sandwich now has your $5. Come tomorrow he may still have your $5 yet you will now be hungry again. Something that has such a short life of any value is hardly adding value to the economy. If it stayed around longer and could be traded and really considered an asset, then ya, that would be wealth creation. That's why I think the food industry is a poor example of wealth creation.