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To: Jags who wrote (4010)	1/15/1999 2:18:00 PM
From: eabDad	Respond to of 99985

JR- The purist version of the zero sum game only refers to the operation of the financial markets. If Tom sells stock A to Jim for $12, and it goes to $13, the financial impact to Jim is a $1 profit and a $1 "opportunity cost" to Tom. Adds to zero. As for the argument that stocks go up over time, adding wealth, this is not a financial transaction, and therefore not part of the zero sum game. The fundamental argument is that over time the capital markets provide money to companies which invest that money in people which create value through products, rasing the standard of living. The creation of value is rewarded in profits, which is passed to shareholders in the form of dividends and higher prices as a reward for the original investment. The financial markets do not create wealth, but it does provide a vehicle for humans to create wealth. Z