Value Transference is more important nowadays than value creation

Value Transference is more important nowadays than value creation, by Lion of the Blogosphere.

Most economists stuck in an eighteenth century mindset (when Adam Smith published The Wealth of Nations) believe that most money is earned because value is created. But in a post-scarcity economy, the majority of work is value transference work, work that doesn’t create any value but just transfers the value created by others.

As I’ve stated many times before, if you want to understand how and why businesses make a profit, don’t read an economics textbook, read Michael Porter’s book Competitive Strategy (or one of the many derivative books).

The irony of business “competition” is that businesses are competing to get themselves into a position where they have a monopoly and they no longer have to compete.

Value transference is tied to winner-take-all economics, because the natural state of things is for a small number of people and companies to be big winners based on transferring the value created by others to themselves.