this post was submitted on 11 Jan 2024
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[–] [email protected] -3 points 10 months ago (1 children)

Renting out property does create wealth. Think of a house as a factory that produces shelter. Running the factory, as opposed to leaving it idle, increases the amount of shelter in the world, and shelter is a form of wealth.

[–] [email protected] 10 points 10 months ago (1 children)

Building a house creates wealth. Owning the land underneath it does not, it merely captures a portion of the wealth produced by others.

[–] [email protected] -4 points 10 months ago

That's a well-established economic theory and I'm not contradicting it. What I'm saying is that renting out the house after it's built continues to create wealth. A world in which I build a nice house but keep it empty is wealthier than a world in which I leave the land unimproved, but a world where I rent that house out (or live in it myself) is wealthier still. The experience of living in that house, as opposed to some inferior option, has value.