Friday 26 February 2010

Everyone makes a loss in Capitalism

Capitalism is a philosophy in which everyone makes a loss. If a medical Doctor sells an operation to a patient, the patient has paid less for the operation than their valuation of the (benefits of) the operation. To their customer, the vendor has made a loss. From the point of view of the patient, who is buying an operation, they have got a good price, and from their point of view the Doctor has made a loss.

To the customer, all purchases look like a bargain. The same is true for the vendor, who is a customer of the customer. From the point of view of each, the other has made a loss; everyone makes a loss in Capitalism. This is because the Sun provides our sustenance and we do nothing to get fed by the Sun. If the Sun shines on our crops, we get (free) food in exchange for nothing, for free and so the Sun, our counterparty, has made a loss. We have gained from doing nothing. Everyone has made a loss, except for us.

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