If you start with nothing out in a plot of land in the middle of the forest without any access to the outside world you could start gathering food, building shelter and then start farming. It may take you a few years but you would end up with a farm that could sustain yourself even if you only worked part time on it. So your economy started with nothing and ended with a productive farm. If you continue this and work in your spare time on improvements you might end up with an even bigger economy with things like a flour mill, sawmill, etc.
The same take place on a larger scale as well. You pay software developers a few million dollars to make a product that is worth a hundred million dollars. That metal fabricator is making a tool that is worth maybe twice his rate in the amount of goods it will produce, and the fabricator even have enough money and spare time to get better tools for himself over time so he can work faster and take on more dificult jobs. The infrastructure that our economy is built on is growing over time as workers build it up and therefore the economy is growing.
Latest Answers