Difference between revisions of "Gain from effort"

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==About==
 
==About==
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[[Economic gain]] is an idea basic to all life. It should not be (but often is) confused with [[profit]], which cannot exist independent of a [[capitalist]] [[society]].
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[[Gain from effort]] refers to the expenditure of [[economic value]]  on an activity which then returns greater value than was originally spent on it. It is an idea basic to all life, and should not be (but often is) confused with [[profit]], which cannot exist independent of a [[capitalist]] [[society]].
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===Definition===
 
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Economic gain occurs when an entity expends a particular type of value on a particular project which then returns greater value than was originally spent.  
 
  
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An "entity" can be, for example:
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This is equivalent to a common ''informal'' or ''metaphorical'' use of the word [[profit]]. Activities such as those below are often described as "profiting" from "investment", but this is technically inaccurate; see [[gain from effort vs. profit]].
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* an individual organism -- expending stored energy to gain food, which can be consumed to replenish that energy as well as provide extra energy (profit) for non-food-gathering activities
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===Examples===
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* an individual's possessions -- planting some grain instead of eating it in order to grow more grain (profit)
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* An individual organism expends stored energy to gain food, which can be consumed to replenish that energy as well as provide extra energy for non-food-gathering activities.
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* a group of people --
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* An individual or group plants some grain (instead of eating it) in order to grow more grain.
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** trading food for tools to help grow or gather more food
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* A group of people --
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** constructing defenses around a village to protect people and possessions
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** trades food for tools to help grow or gather more food.
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** tending to the sick so that their skills and knowledge will remain available on recovery
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** constructs defenses around a village to protect people and possessions from animals or hostile people.
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** providing sustenance for the infirm, so that their wisdom will remain available
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** tends to the sick so that their skills and knowledge will not be lost.
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* a society --
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** provides sustenance for the infirm, so that their wisdom will remain available.
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** spending time and energy to make paths so that travel takes less time and energy
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* A society --
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** tending to "useless" members of society in order to cultivate empathy and kindness
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** spends time and energy to make paths so that travel takes less time and energy.
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** spending resources creating art in order to increase general enjoyment of life
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** ministers to "useless" members of society in order to cultivate empathy and kindness.
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** providing mutual protection and aid to minimize attrition from major mishaps too large for individuals to overcome alone
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** expends resources creating art in order to increase general enjoyment of life and promote cultural bonding.
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** provides mutual protection and aid to minimize attrition from major mishaps too large for individuals to overcome alone.
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Although this activity could be described as "profit" from "investment", it is not:
 
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* '''Investment''' requires a socially-enforceable [[contract]] to repay a ''loan''.
 
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* '''Loaning''' requires social recognition that the owner of the loaned value continues to own it even while it is "invested".
 
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* '''Profit''' requires social recognition that the owner of the loaned value is entitled to ''all of the economic gain'' from its "investment".
 
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Economic gain does not require any of these things. In the examples given above, it merely makes use of known natural laws or behaviors to produce net-positive benefit. One or more entities may be held responsible if the project does not do as well as expected, but nobody would be expected to "repay" the expended value as if it were merely a "loan".
 

Latest revision as of 01:13, 3 July 2013

About

Gain from effort refers to the expenditure of economic value on an activity which then returns greater value than was originally spent on it. It is an idea basic to all life, and should not be (but often is) confused with profit, which cannot exist independent of a capitalist society.

This is equivalent to a common informal or metaphorical use of the word profit. Activities such as those below are often described as "profiting" from "investment", but this is technically inaccurate; see gain from effort vs. profit.

Examples

  • An individual organism expends stored energy to gain food, which can be consumed to replenish that energy as well as provide extra energy for non-food-gathering activities.
  • An individual or group plants some grain (instead of eating it) in order to grow more grain.
  • A group of people --
    • trades food for tools to help grow or gather more food.
    • constructs defenses around a village to protect people and possessions from animals or hostile people.
    • tends to the sick so that their skills and knowledge will not be lost.
    • provides sustenance for the infirm, so that their wisdom will remain available.
  • A society --
    • spends time and energy to make paths so that travel takes less time and energy.
    • ministers to "useless" members of society in order to cultivate empathy and kindness.
    • expends resources creating art in order to increase general enjoyment of life and promote cultural bonding.
    • provides mutual protection and aid to minimize attrition from major mishaps too large for individuals to overcome alone.
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