Understanding How The Economy Works

For John, BLUF:  The system works by people getting rich and creating additional jobs, so others can prosper.  Nothing to see here; just move along.

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Here is a Tweet from Professor Stephanie Kelton (@StephanieKelton):

No one makes a billion dollars.  You TAKE a billion dollars.  You take it from your workers (Hi, Jeff, Jim, and Alice!).  You plunder it from the environment (What up, Charles & David?).  You strip it using patents/protections (Lookin' at you, Bill.)

I can almost hear the voice of our Senior Senator, E Warren, in the background screaming "You didn't build that."  That said, I realize it was not her line when first uttered.

Here is the Tweet Response of Nassim Nicholas Taleb (@nntaleb):

She is using Twitter and a computer to claim that those who invented them are rent seekers.  And she, a parasite, lives from rent seeking, charities, and public funds.

I am with Nassim Nicholas Taleb on this one.

And that isn't a Black Swan.

"Rent Seeking involves seeking to increase one's share of existing wealth without creating new wealth. Rent-seeking results in reduced economic efficiency through poor allocation of resources, reduced actual wealth-creation, lost government revenue, increased income inequality,[1] and (potentially) national decline."

Hat tip to the InstaPundit.

Regards  —  Cliff