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Some efforts at organizing those resources, namely investment efforts, effectively increase those resources by increasing talents or technology, or by creating new spaces (such as conquering the wild west or building an internet), and those efforts may be government-ally organized or privately organized or both.
My point is just that "new spaces" are not created by investment efforts, but existing wealth is conquered. If europeans would have rented land from indigenous people, they would have gained the same resources. But they did not recognize the political privileges of indians. Whereas within european governmental framework such privileges are untouchable.
The essential attribute of wealth is "appropriability," to create which "the rights of property must be recognized and enforced Whoever makes, interprets, or enforces law produces wealth".
Neoclassical equilibrium is not an equilibrium of production competition (controlled by "invisble hand"), but equilibrium of political power.
..appropriation of their wealth by the FIRE sector of the economy..
Indeed. Private monopoly sector crowds out private market (competetive) sector in accelerating phase via the help of and by finance (money monopoly). All finance goes to that sector that gives the highest yield, and that is always the monopoly sector that captures all surplus from the markets, especially debt leveraged capital gains. That leaves no purchase power to labour. Only by keeping public wealth in the control of government can private markets be saved.
So, unlike santiago says there is no zero sum game between government and private markets.
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