They’re arguing about the difference between value and wealth, with a little bit of exchange medium thrown in.
As I see it, value’s what something’s worth, however that’s measured. Wealth is the accumulation of valuable stuff.
So in the taco example, the taco has value, but once you eat it, it’s value is pretty much gone, insofar as the taco has ceased to exist. It’s contribution to your wealth has gone away as well.
I suppose you could recoup a slight bit of that value a day later when you poop it back out, assuming you keep the poop. But when you put it on your garden, or in a flaming paper bag on someone’s porch, that value is destroyed as well.
Wealth and value don’t necessarily have anything to do with money- money’s just the medium of exchange; it’s a way to convert wealth into something transferable and comparable.
**wealth generation **
In the last articles we have been analyzing the different elements that compose a concept of business and how we can be refexionando on each one of them with the objective to introduce modifications that more innovators do as a whole. Even so, with this it does not have is enough.
A business concept must by objective become a model that can be implanted actually, is to say that it is possible to be developed in the market. And to do this it must know very clearly as he will be able to generate income and benefits, or in the short, half or long term. We could define as the capacity of wealth generation. Several factors exist that affect the capacity of generation of wealth of a business concept. First it is the efficiency of the model, is to say if the way which we must to provide value to our clients is efficient or, in other words, if the value that our clients can give him to which we do exceeds the cost to do it. A second factor makes reference to if our model is unique or we do the same one exactly that makes all the companies of our sector. A third element, to which we can denominate “coherence” depends on if all the elements of the business concept fit and have coherence with the objectives. Finally, a fourth factor, fundamental, has to do with the capacity that has the concept of concrete business to generate “multipliers of benefits” that allow to grow and to generate yields over the competitors.
(Commercial link deleted.)