hayvan

I’m not disagreeing with you. I have held the belief that neoclassic theory of economics is bullshit since I studied it 20 years ago. I’m just explaining that bullshit which is still used to measure things like development, progress etc.

Each time money moves: one trade happened. Someone bought, someone sold something. It’s all activity. Money moving around fast: a lot of activity, people getting what they want. Money sitting still: stagnation, no work done, no production etc.

That’s the theory. Of course reality is a bit more complicated. People doing volunteer work is often net positive for humanity but won’t show up in economic metrics.