zlacker

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.