Table: Physical / Intellectual Comparison

 

 

Aspect	Physical Objects	Intellectual Objects
State of Nature	Pre-existing Physical Matter   (atoms, elements, compounds, land, non-human life forms)	Pre-existing Intellectual matter (symbols, concepts, language, culture)
Homesteading Process	Identify a human need   (people need transportation)	Identify a human need   (people need entertainment)
	Identify physical objects, that, if properly transformed, might satisfy the need   (aluminum and rubber can be fashioned into bicycles)	Identify intellectual objects, that, if properly transformed, might satisfy the need   (melody, harmony, and lyric can be fashioned into a song)
	Invest time, labor, money, and goods to Transform Physical Matter   (build bicycle factory)	Invest time, labor, money, and goods to Transform Intellectual matter   (compose and record original digital song file).
Result of Homesteading	Homesteader rightfully owns  newly created Productive Capacity   (bike factory)	Homesteader rightfully owns newly created Productive Capacity   (original song)
Location	Homesteaded Property Exists at unique location in physical space	Homesteaded Property Exists at unique location in intellectual space
Capital Value	Consumer items . . .   (bicycle copies)   . . .are mass-produced and sold to satisfy consumer demand	Consumer items . . .   (song copies)   . . .are mass-produced and sold to satisfy consumer demand
Consumer Value	End-user need is satisfied   (one bike copy provides transportation for one person)	End-user need is satisfied   (one song copy provides entertainment for one person)
Cost per copy	Each copy requires existing productive capacity   (bike factory)   plus additional material inputs   (aluminum, rubber)   plus human labor, time, energy   (electricity).	Each copy requires existing productive capacity   (original song file)   plus additional material  inputs   (computer, CD)   plus human labor, time, energy   (electricity).
Effect of each additional copy on capital value	Consumer demand reduced by one satisfied consumer   Consumer demand increased due to word-of-mouth, brand recognition (perhaps).   Wear and tear necessitates new productive capacity   (machines wear down, must be replaced with new machinery)	Consumer demand reduced by one satisfied consumer   Consumer demand increased due to word-of-mouth, brand recognition (perhaps).   Wear and tear necessitates new productive capacity   (people get tired of song, must be replaced with new original song)
Effect of each additional copy on consumer value	New copy does not deprive prior customer of use	New copy does not deprive prior customer of use
Effect of multitudinous copies	Traffic jam   (use of roadway becomes rivalrous)	Traffic jam   (use of bandwidth becomes rivalrous)
Valid Competition	Different person separately homesteads productive capacity, mass-produces competing product   (different original bike factory at different physical location, producing copies of  different bicycles with a different name)	Different person separately homesteads productive capacity, mass-produces competing product   (a different original song file at different intellectual location,  producing copies of different song with different title)
Theft of capital goods	Person steals productive capacity, leaving original homesteader without   (breaks into homesteader’s factory, steals machinery)	Person steals productive capacity, leaving original homesteader without   (hacks into homesteader’s computer, copies original song file, then deletes original)
Theft of consumer goods	Person takes mass-produced item, leaving customer without   (steals bicycle. Customer must now re-purchase new bike copy on the market)	Person takes mass-produced item, leaving customer without   (copies song file, then deletes original. Customer must now re-purchase new song copy on the market)
Unauthorized copying	Person expropriates homesteader’s productive capacity   (trespasses on factory, runs assembly line to make copies)	Person expropriates homesteader’s productive capacity   (trespasses on original song file, runs hardware to make copies)