Certain people on the left use a so-called "gap" as evidence. Let me give you a scenario. Your neighbor Joe, is slightly wealthier than you. Say his net worth is 3% greater than yours. Suppose that I want to purchase some asset from each of you. I will pay Joe $1 million and you $250,000, which represents a huge increase in both your net worths. The gap between you has expanded. Joe is now much more wealthy compared to you than before. Question: does that mean you got poorer when I gave you the $250,000?
Certain people on the left use a so-called "gap" as evidence. Let me give you a scenario. Your neighbor Joe, is slightly wealthier than you. Say his net worth is 3% greater than yours. Suppose that I want to purchase some asset from each of you. I will pay Joe $1 million and you $250,000, which represents a huge increase in both your net worths. The gap between you has expanded. Joe is now much more wealthy compared to you than before. Question: does that mean you got poorer when I gave you the $250,000?>>>>>>>>>>>
Actually, if you paid fair market value neither one got richer or poorer, net worth did not change, you simply converted it into cash. Just where do you imagine a huge increase in net worth came from, are you paying all that money for something that was actually worthless? Or do you think that only cash counts when computing net worth?