Myth on Trading

Some people believe that in trading in the market, one person gains at the other’s expense. This is a myth. When two people trade freely, they would only do so if each one values the other product or service more than the one that they currently have. For instance, if I choose to buy a chair for $40, it is because I value the chair more than my $40, and the seller values my $40 more than his chair. So, we trade and have each become more wealthy in the value of our possessions. This is how trade can increase the standard of living for all parties involved. However, with regard to taxation, stealing is when one person gains at the other’s expense.

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