wealth^(1/0)

Transactions create value

When a tailor makes a hand-made dress, she spends time and effort to make it special. The cost of the materials added to the cost of her time and expertise determine what the value of the dress is. Prior to the tailor’s labor, there were only raw materials, able to be sold at the same value as they were purchased. Yet the price she sells the dress for reflects not only the sum of the materials and labor that went into it, but also a margin for profit.…