It seems like you have just reinvented the criticism "if you can extract almost all the value from each transaction (aka 'exploitation'), you will shortly be rich". Well, yes, but the point is that a market with competition generally prevents you from doing that. As someone pointed out, if you make 100 loaves then you have created 100 dollars of value; the question is how those 100 dollars are distributed. You construct an example where the baker is able to capture 99% of the value he created; good for him, but it relies on your construction of the price. Seeing the baker get rich, won't a bunch of other people decide that bread-making can't be that hard, make some loaves, and sell them for 98 cents? And so on until the price of bread is equal to the cost of production plus the smallest profit anyone is willing to live with, which in your example seems to be a penny.
This kind of "stuff gets cheaper, everyone benefits" advocacy is why I wrote that comment to begin with. The free market can't be always pushing down the price of all goods (measured in other goods), that's a logical impossibility. There's no magic force acting on one conveniently chosen side of each transaction. Why isn't the same force pushing down the price of labor then, making labor cheap in terms of bread, instead of making bread cheap in terms of labor? Oh wait, maybe it is. Maybe all these forces are acting at once and going into weird feedback loops and there's no reason why the end result would be moral in any way. That's my point.
If it's worth saying, but not worth its own post, then it goes here.
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