If I was to try to sell you a piece of wood about 3 feet long, how much would you pay? Not much, I assume. Maybe a dollar.

What if that piece of wood was nearly a hundred years old? Probably even less.

What if I was to turn that piece of wood into a baseball bat? How much would it be worth then? My labors have turned the raw material into something useable. The piece of wood’s value has increased because it is no longer just a raw material. Now, it is a raw material plus my labor.