Somali pirates recently killed four Americans in the Indian Ocean, whom they had seized as hostages for ransom. The Indian Ocean, a main shipping lane, has become dangerous as pirates have discovered a way to tap into wealth from other nations, though the murder of hostages is rare. Pirates extract ransom merely for releasing sailors and boat passengers.

When people obtain wealth without giving worth in exchange, we all pay the price. Shipping companies pay ransom so that they can continue transporting their goods, apparently considering the ransom another “cost” of doing business. The price of the ransoms, for no added value, are passed on to the buyers of the goods.

Companies operating in countries with corrupt governments, and citizens needing government services pay bribes, another “cost” of service. The bribes increase the cost of the goods or services for no added value. Moral corruption also results. Greed, not the common good, triumphs.

In more developed nations, some find other ways of making money without adding value to goods or services. “Bundling” home mortgages of unqualified buyers with those of qualified buyers brings money to the bundlers, but only increases the cost to others (i.e., social services, taxpayers) when buyers default who should not have been given mortgages in the first place.