zlacker

Define "effective." A company spends its money on people and other inputs to productivity. To my mind that's a lot more "effective" than giving it to the investor class that "spends" it on other investments (by buying it from other people in the investment class).

Most of the money returned to shareholders isn't going to be pumped back into the economy as money spent on goods and services. It just goes into the casino we call stock and bond markets where it provides some liquidity for some investment into companies, but most of it is just spinning around creating no value.

>>duped+(OP)
In an economy, people’s work is transformed into output in the form of goods and services, which are then consumed by people.

It matters whether people’s work is effective or not, because it it’s ineffective, you have fewer goods and services that can be consumed.

The factor that connects work to output is called productivity.

It matters how the goods get distributed, yes. But as communism has shown, it also matters a whole lot how many goods and services are being produced.