car and house Insurance both provide value by reducing the capital investment required to continue having an item, landlords reduce the upfront cost of housing by charging a continuous fee instead of a lump sum.
Building a house is one time. Maintenance creates Value, yes, but one only needs to compare the cost of maintaining a house with the cost of renting it to see that the vast majority of profits come from rent-seeking. It’s non-productive extraction.
There’s no Value created by risk, that’s an ad-hoc justification for profiting endlessly off of labor performed one time long ago.
car and house Insurance both provide value by reducing the capital investment required to continue having an item, landlords reduce the upfront cost of housing by charging a continuous fee instead of a lump sum.
Insurance is perhaps the peak of Financial Capital masquerading as Value.
what about banks?
Same problem, arguably far worse. Consider reading Imperialism, the Highest Stage of Capitalism. Banks play a huge part in the dominance of Financial Capital.
Houses are not “one time labor.”. Housing requires constant scheduled maintenance and upkeep over time.
Not to mention the financing required to pay for it all,which is normally spread over 30 years.
Building a house is one time. Maintenance creates Value, yes, but one only needs to compare the cost of maintaining a house with the cost of renting it to see that the vast majority of profits come from rent-seeking. It’s non-productive extraction.