I disagree with your statements. I'm going to tackle your statements with opportunity cost and money circulation (Economic topics)monkat said:God. I hate it when people don't understand economics.
"Nothing is taken away from the creator of said content, they still have it."
So if a maid comes to your house and cleans, and you don't pay, I guess nothing is taken away from the maid company, right? They still have the maid.
Not a perfect replication by any means (what the company is really selling is time), but the point remains. Software is bizarre in that it is easily replicated. No, we're not taking an actual cartridge, but we are taking the service without paying.
Not gaining money from a product is just as bad as losing the product as a whole (especially if it expires), and if everyone pirates, no one gains money. No money circulating, bad economy.
Opportunity cost -
Let's say I have $40 in my wallet. I can do 3 things with it. I can spend it on a video game. I can spend it on other merchandise. I can also deposit it into my savings account for interest. As you know in economic, we not only look at the explicit cost (cost in terms of number), we also look at implicit cost (cost that is hidden to us). If I spend my $40 on video game, then I lose the opportunity to spend it on other merchandise (say groceries) or earning interest in savings account. If I spend my $40 on other merchandise (and be a pirate), then I lose the opportunity to spend it on video game or earning interest in savings account. If I deposit my $40 into my savings account to earn some interest, then I lose the opportunity to spend it on video game or spend it on other merchandise (say groceries). You see, even if I pirate video game, I still lose something in return. Even if I become a lawful citizens and buy every video game, I still lose something in return. Being a pirate does not mean it will bring down the whole nation's economy. No one is going to hold on to their money. They will use their money on something. So if people pirate video game, they will use the money to buy other things, or to earn interest from it.
Money Circulation -
Let's say I have $40 in my wallet. I can do 3 things with it. I can spend it on a video game. I can spend it on other merchandise. I can also deposit it into my savings account for interest. If I spend my $40 on video game, then my money goes to the video game industry (which by the way is more lean towards oligopoly since there are only few sellers in this market). If I spend it on other merchandise, then my money goes to other field of market (most likely monopolistic competition). If I deposit it into my savings account, my money goes to the bank which then lend it to other people. You can see that no matter what choice I make money circulation is happening. No body is going to hold on to that money should they pirate the game. They are just going to spend it somewhere else.
I would also like to point out that monopoly and oligopoly are the type of market system with slowest velocity in terms of money circulation. This is because they have the lowest efficiency in terms of economic sense. These type of market system will hold back their supplies just to raise the price up. They can do this since their competitors are low in the same market, making them have much more power in terms of price labeling. They will not achieve allocative efficiency by holding their supply up. They are, the most inefficient market system in capitalism.
With monopolistic competition, you have a high number of sellers and high number of buyers. So neither sellers nor buyers have huge power in terms of price labeling. In fact it is competition that labels the price. Monopolistic competition will have higher allocative efficiency compare to others (though not higher than perfect competition). This means that will are more willingly to produce more outputs to satisfy the society. More production = higher velocity in terms of money circulation (and by your definition, drives up the economy).