Where do wealth/growth actually come from?

With skills I guess I agree, it is the actual performance that is paid for. As a former high school farm boy, I find it it is hard to call singing a song or playing a baseball game 'labor'.

Acquisition of knowledge and knowledge itself can be wealth. People will pay for a trading idea, a chemical formula, know-how, or will pay for research to be done. People purchase ideas all the time.
 
I don't think knowledge or skills are properly called wealth. They are skills that can be exchanged for money, which is itself a claim on wealth and not wealth itself.
 
Quote from olias:

I also get pissed off at all of the bullshit that gets sold in the US. I'm talking about all of the useless crap that gets hawked on infomercials ...get rich quick schemes, trading systems that get sold for thousands of dollars that don't perform, magic pills purported to do whatever it is you need done. I should sell a pill on late night tv 'guaranteed to mow your lawn or your money back!'. It's no less effective than any number of other useless products out there. Am I foolish in thinking this is a major flaw with our economy? ...that we reward A-holes for coming up with useless shit? I mean there's bullshit for sale everywhere you look. To me it looks like the biggest growth sector of our economy.

When money changes hands there should be something of value exchanged. It benefits all of society that way. When wealth is transferred in exchange for useless shit it is a drain on the whole economy.
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I agree.

People don't do much of anything functional except eat, so all the advertising industry is selling is bs goods to satisfy emotional needs. Beanie babies, knick knacks, designer pocket books, (and currently "silly bands") etc.

I used to be a buyer and the crap that ends up in the store should never be there but what can you do, people buy the stuff.
 
Quote from Sanaz3:

Peter Schiff has drawn a good analogy. It's worth reading:
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I think he has forgotten to tell that one American has a bigger stick than all five Asian combined.
 
Quote from number22:

I think he has forgotten to tell that one American has a bigger stick than all five Asian combined.
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http://www.youtube.com/watch?v=bFoWCbQjwXw

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Quote from GTG:

Wow, what a straight-forward explanation of wealth and money. I enjoyed that article. Thanks for posting it.
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It's a good read.

This thread has been an "interesting" read too.:D
 
I don't think knowledge or skills are properly called wealth. They are skills that can be exchanged for money, which is itself a claim on wealth and not wealth itself.
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Services are exchanged for money, skills cannot be exchanged. Skills are acquired by personal effort. Skilled services can command very high prices.

Knowledge however can definitely be wealth, I disagree. If I invent and posses a chemical formula that cures heart disease, other people will value that knowledge and pay me for it.

I don't see how you can have that opinion in an economy that is 80% services and information.
 
Quote from Technician:

If no one prints money and no one takes money out (US, or world as a whole), then it's zero sum right?

How is wealth created and where does growth come from? Commodities?

I guess what I'm asking is, how does money actually work?
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Comes from working hard. Those who won't work hard to get what they want will never achieve anything. Whatever effort and work ethics we put out into the world always comes back at us with mathematical precision.
 
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