Hacker News Reader

> any action which boosts the relative exchange price of an asset can be claimed to create value, even if the action is purely destructive

Usually, only actions which increase (price * quantity) are claimed to create value.

For example, no one is claiming that the current US gasoline pipeline shutdown is creating value. Price increases, quantity decreases, everyone is sad except maybe a few margin traders who got lucky.

View on HN

If an oil pipeline breaks and destroys available sources of potable water, it may increase price * quantity for companies selling bottled water, but the price increase is due to increased rent paid for access to clean water, due to an increase in scarcity caused by environmental degradation.

Additionally NIPA consider interest payments on debt financed speculative asset purchases and late fees paid to banks to be output. And in talks with local governments, property investors regularly claim that any project which might increase speculative land prices creates value when asking for tax abatements.

Reply on news.ycombinator.com