Comment by nightski
9 years ago
But you did not do so out of the goodness your heart. They provided a product which provided enough utility to justify the cost. Producing such a product is where the value is created, not in the purchase of said product.
But the purchase provided capital, which enabled further production. Banks don't lend money out of the goodness of their hearts, either.
And, really, have you never bought something in small part because you liked the seller? That's the sentiment behind the exhortation to "buy local" or to buy Girl Scout cookies or from a local school's fundraiser. I suppose you could say a purchase is a contribution to the extent that the price exceeds the cost of production.