>> Any company which has earnings beyond those of operating costs is a concentration of wealth by definition.
For context, here is the second sentence related to the above:
Whether that wealth is distributed to shareholders, kept as
retained earnings, or otherwise transferred to specific
entities is irrelevant.
I believe this relevant to the below.
> Let's say I buy $20 worth of art supplies, and I paint a landscape and sign it with my moniker, "bright". Since "bright" paintings are very rare and go for a million bucks each, I now have created a million bucks of value. Who did I transfer the wealth from? Nobody. I took nuttin from nobody. Yet I have become wealthy.
This scenario is not relevant to "big business", but instead describes a sole proprietorship with an assumption of a known fungible value. It also does not account for consumable goods and/or transient services. In any event, by your own definition below:
> Let's say I sell it to you for a million bucks. Did I take your wealth? Nope. I traded a million dollar painting for a million bucks. You are exactly as wealthy as you were before.
Either you have not "become wealthy", as you "traded a million dollar painting for a million bucks" or the effectual value of money exceeds the purchase value of the "million dollar painting". Both cannot be true.
Back to my statement of corporate earnings beyond operational costs being a concentration of wealth. I believe we can agree on the following:
- Any for-profit company has as its purpose the goal of accounts receivable (AR) exceeding accounts payable (AP) over time.
- There are a limited number of recipients regarding profit distribution for any given company.
- Those having no direct or indirect ownership of a given company do not receive profit distributions.
If we agree on the above, then the larger the profits, the larger the distributions. Since the set of people qualifying for profit distributions are less than the set of all people having no investment relation to the company, it follows that said profits are enjoyed by fewer entities than those strictly involved in the AR side of the ledger.
Hence a concentration of wealth into the organization.
> Either you have not "become wealthy", as you "traded a million dollar painting for a million bucks" or the effectual value of money exceeds the purchase value of the "million dollar painting". Both cannot be true.
I became wealthy by creating wealth, not concentrating it. Concentrating it requires it be taken from somewhere else. There is no taking going on, there is creation and exchange.
>> Either you have not "become wealthy", as you "traded a million dollar painting for a million bucks" or the effectual value of money exceeds the purchase value of the "million dollar painting". Both cannot be true.
> I became wealthy by creating wealth, not concentrating it. Concentrating it requires it be taken from somewhere else. There is no taking going on, there is creation and exchange.
The scenario you have described is logically consistent while being representative of a tiny subset of commerce. Revisiting the original use-case:
Let's say I buy $20 worth of art supplies, and I paint a
landscape and sign it with my moniker, "bright". Since
"bright" paintings are very rare and go for a million bucks
each, I now have created a million bucks of value.
Assuming all of the above, this business model does not account for at least the following:
A - Businesses having more than one employee.
B - Asset deprecation, such as when purchasing a new automobile.
C - Consumable goods, such as food, petrol, etc.
D - Services such as commercial/residential rent and physical security.
E - Taxes.
F - Stock dividends and/or performance bonuses.
A and E involve direct wealth transfer from the business to relevant parties.
B is a second order effect only realized when the buyer attempts to sell the asset to a third party.
C and D are direct wealth transfers as the seller retains the remuneration for as long as they desire (excluding applicable cases identified above) and the buyer eventually does not have a physical equivalent. Note that this often remains a valuable exchange for both parties.
For context, here is the second sentence related to the above:
I believe this relevant to the below.> Let's say I buy $20 worth of art supplies, and I paint a landscape and sign it with my moniker, "bright". Since "bright" paintings are very rare and go for a million bucks each, I now have created a million bucks of value. Who did I transfer the wealth from? Nobody. I took nuttin from nobody. Yet I have become wealthy.
This scenario is not relevant to "big business", but instead describes a sole proprietorship with an assumption of a known fungible value. It also does not account for consumable goods and/or transient services. In any event, by your own definition below:
> Let's say I sell it to you for a million bucks. Did I take your wealth? Nope. I traded a million dollar painting for a million bucks. You are exactly as wealthy as you were before.
Either you have not "become wealthy", as you "traded a million dollar painting for a million bucks" or the effectual value of money exceeds the purchase value of the "million dollar painting". Both cannot be true.
Back to my statement of corporate earnings beyond operational costs being a concentration of wealth. I believe we can agree on the following:
- Any for-profit company has as its purpose the goal of accounts receivable (AR) exceeding accounts payable (AP) over time.
- There are a limited number of recipients regarding profit distribution for any given company.
- Those having no direct or indirect ownership of a given company do not receive profit distributions.
If we agree on the above, then the larger the profits, the larger the distributions. Since the set of people qualifying for profit distributions are less than the set of all people having no investment relation to the company, it follows that said profits are enjoyed by fewer entities than those strictly involved in the AR side of the ledger.
Hence a concentration of wealth into the organization.