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I think if you're not including institutions and education as basic building blocks of wealth creation, you're missing most of the foundation.  This is especially the case since wealth is relative to what people value in life, and institutions are instrumental in determining what is valuable and what is worthless in human society independent of the amount of raw materials available.

Your implicit model of economic value seems to be that wealth is a function of raw materials and human labor with some kind of technology/institutional multiplier.  You haven't specified how people put a value on such production but you seem to discard the utility theory of conventional economics for doing so. So, specify how you think people determine how much raw materials and labor they need to be wealthy or at least achieve an acceptable level of human functioning.

by santiago on Tue Sep 4th, 2012 at 12:49:59 PM EST
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