If you added value, then of course you will end up with more money than you started out with, otherwise how could you meet your material consumption needs??
However no one will pay you more money than it would cost to produce it themselves or acquire it from another source. Unless you could prevent somebody else from producing it. Competition among producers drives price toward cost. Which also includes the reproduction costs of all labour, land and capital.
>> Is this a serious question?
> Yes, and there is no need for your contempt. I was
> just wondering if there had ever existed ever a free
> market without regulation, or if it was merely an idea
> that is used in economic theory.
I ask again, is this a serious question??
>> In that regulation creates privilege, which is the
> antithesis of a free market. Privilege, by eliminating
> competition, drives price to utility.
>
> Okat, what does "drives price to utility" mean.
> Answering questions about theoryspeak with more
> theoryspeak is not helpful.
Utility is how useful something is to you. In the absence of competition to drive the price of Capital towards its cost, Capital will command it's marginal utility as it's price.
Here is a very simplistic example:
If you grow tomatoes and can grow $10 worth with your bare hands, but $100 with a shovel the marginal utility of the shovel is $90.
If shovels cost $10 to bring to market, in a free market you would pay me no more than that. However if I had a monopoly in the supply of shovels I could charge you as much as $89 per harvest to rent it and you would still be $1 ahead. This is the logic of Capitalism. If I can keep shovels away from labour, I can earn a return to Capital.
Now if I can kick you off the land too, and rent you both the land and the shovel, then I can simply pay you your physical reproduction costs and nothing more, as the alternative to not working for me is starvation and homelessness.
-- Dmytri Kleiner, robotnik Telekommunisten, Berlin.
dk at telekommunisten.net http://www.telekommunisten.net freenode/#telnik