Mike Munger awesomeness*:

* – I have one quibble with the video, and that is the part where it notes that there “people get happier without any change to the total wealth that is available”. Wealth is the wrong word to use here (I think). I am pretty sure wealth has increased (note that this means that it’s NOT a zero sum game). What has stayed constant is the “raw” materials. I would argue that wealth has increased because the value that people place on what they have after the trade is greater than before (this is known because it’s basically a premise given as true in the context of the overall argument). Sure this is subjective, but so is the value (and thus the wealth) of pretty much everything (like, say, a painting that you might pay $100MM for but I might only pay $10 for).