This has essentially created a boundary–the fence in Figure 1 below–thereby establishing a conceptual boundary–sometimes referred to as a ‘production boundary’–between these activities.16 Inside the boundary are the wealth creators. Outside are the beneficiaries of that wealth, who benefit either because they can extract it through rent-seeking activities, as in the case of a monopoly, or because wealth created in the productive area is redistributed to them, for example through modern welfare policies.
