tag:blogger.com,1999:blog-1873901426208604624.post3299413406109807510..comments2013-06-19T16:15:08.290-07:00Comments on Wealth In Institutions: Statement of ThesisRichard Ober Hammerhttp://www.blogger.com/profile/14208441695398875817noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1873901426208604624.post-75420804562184274152013-06-11T19:05:09.412-07:002013-06-11T19:05:09.412-07:00Hi Richard. I like your blog. I was wondering if y...Hi Richard. I like your blog. I was wondering if you think it is a problem that the bulk of wealth we possess exists in habits and expectations. If so, why is it a problem? Is this because we can't trust that these habits and expectations will continue? Why not?akhttps://www.blogger.com/profile/07737469899901514392noreply@blogger.comtag:blogger.com,1999:blog-1873901426208604624.post-58945610082839716132013-06-11T16:32:19.441-07:002013-06-11T16:32:19.441-07:00I think that there exist a few statements which ma...I think that there exist a few statements which may support your thesis, but may also invalidate it (, but only at the margin), or may simply serve as food for thought.<br /><br />1. Wealth is, and only is, a store of value.<br /><br />2. While the conventional factors of production for most goods and services are (effective) labor, capital (of various stripes), land (defined broadly, to include natural resources), and technology, the 'factors of production' of wealth are mostly technological. Obviously, wealth is a sort-of residual of production-for-consumption, but the most important input is technology, including institutions.<br /><br />3. The above is /more/ true if wealth is stored in the form of units of account, rather than as consumables, but is still true if wealth is stores in the form of stockpiled consumables.<br /><br />4. At the end of the day, the ability to accumulate wealth is a function of two things: technology/institutions and firepower. One does not necessarily need both, but a sufficient quantity of the sum of those two factors is a necessary condition for wealth accumulation.<br /><br />5. No institution is ever absolute. It is a mark of civilization that rules usually hold more than they are abrogated, but no institution ought to be a societal suicide pact.<br />Conscience Warriorhttps://www.blogger.com/profile/13487448481194494386noreply@blogger.com