Opponents frequently argue that, in any transaction, one party can only benefit at the expense of the other, popularizing the false narrative that trade is a "Zero-sum" game.
With deeper inspection, the holes in this view quickly appear in the face of praxeology, the implications of profit and loss, and the logical process and market mechanism through which I establish that all trade is mutually beneficial, including those trades made by successful business people who spend and make their money.
The Logic of a Win-Win Transaction In a market economy, one accumulates wealth by enriching others through the exchange of goods and services, otherwise known as trade.
Voluntary trade, a type of action, is always mutually beneficial because, by acting, one presupposes a preferred end.
The Incoherency of an "Unfair Trade" Emerging in 16th to 18th century Europe, with the rise of political absolutism, mercantilism was an economic theory that promoted the regulation of a nation's economy to augment state power at its colonies' expense.
Although its policies have been thoroughly debunked by advocates of laissez-faire and other economic systems, and thus rejected by most governing bodies, its outlook on trade is still prevalent in discussions today.
The exchanges between a mother country and its colonies were a departure from voluntary choice as they occurred under the threat of violence to trade and even the use of force.
In the middle of a scorching desert, desperate to quench his thirst, Paul buys a bottle of water for $100. Such a trade might be deemed "Unfair" because of the high price or dire conditions, but why? What should the ideal price be? Or an ideal condition? Do these factors hold objectively across the board? In rigorous economic analysis, can we assume normative ends? Such an assertion would imply that there are results that should occur universally, but in what way do we go about determining what those ought to be? Is what is fair to you fair to everyone else? The answer is simply no.
Individuals always seek the highest satisfaction from their actions, so one cannot rightfully claim that successful business people do not benefit others when making and spending their money through voluntary trade.
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