Entrepreneurs, it has been said so many times over the past 30 years, create wealth. Right this minute, the foolish government is sitting around, waiting with bated breath, for glamorous entrepreneurs to get on with doing just that. But there are no signs that a great boom in business ingenuity is on its way.
So why are entrepreneurs being so shy? Don\’t they want to create wealth? They probably do. But the fact is this: the entire entrepreneurs-create-wealth thing is a fallacy, and the government is wrong to place its faith in it. Entrepreneurs don\’t create wealth. Banks create wealth, only banks.
Not at all. Stick, wrong end of.
Entrepreneurs are those who move productive assets from lower to higher valued uses. This is the very definition of wealth creation.
Banks are useful in this process, as is money, the collation and allocation of it that banks perform.
But we had entrepreneurs and wealth creation before we had banks and we\’ll have it again even if we abolish banks altogether. Not as much as we have now with banks, sure, but that\’s because banks facilitate the process: but they are not the process itself.