That simply means your company operates more efficiently to your competitor. You also need less employees. Someone is losing in this equation for the company and the remaining employees to gain.Danger said:Today I finished building a product that enables my company to make decisions within minutes, that used to take months.
The results of faster decisions means lower costs, more profit, better cash flow or a stronger Balance sheet.
This isn't creating wealth. It's taking more of the available wealth by means of smart business practices.
I would like an example that creates wealth, not improves it.
Offset jobs. What used to take people now took a few computers. He provided a low cost alternative to high cost computers thereby taking some of the other guy's business.Or a more precise example would be Michael Dell.
He started a Computer company in his dorm-room, providing a lower cost PC to everyone and creating jobs at the same time.
Another redistribution by smart business practices instead of creation from nothing. This is like saying that robots replacing workers creates wealth. It does not. The overall effect is 0. It's always a zero sum system.
I'll tell you what creates wealth, manufacturing and mining. Someone mines the ground, takes out the ore, some other guy shapes the ore into a widget, some other guy provides accessories for the widget, some other guy provides technical support for the widget, some other guy provides market data for the company making the widget. Now people have more money, have more kids and the kids consume so they buy widgets and sell themselves out for labour at an hourly rate or salary rate. Other resources are consumed to grow more humans. Plants and animals are consumed for their food properties and areas of the planet are cleared because we need space for all this. We consume the earth to make ourselves "wealthy". It's still a zero sum game. Why? Because we can't leave the playroom. We're converting the planet's resources into something else, we're not adding. Really though, you can't add anything. Law of conservation of mass/energy. The entire universe is a massive closed system.
Wealth is consumption.
I think I see now why the bailouts happened. The money we use is bull**** anyways and has no value only what we give it. Governments were attempting to start another cycle of consumption and keep this cycle running.
Disagree?