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Adam Smith ‘s e book The Wealth of Nations, printed in Great Britain in 1776, distinguished between the outputs of what he termed “productive” and “unproductive” labor. The former, he said, produced items that may very well be saved after manufacturing and subsequently exchanged for money or other gadgets of value. The latter, nonetheless helpful or crucial, created companies that perished at the time of manufacturing and therefore didn’t contribute to wealth. Building on this theme, French economist Jean-Baptiste Say argued that production and consumption had been inseparable in companies, coining the time period “immaterial merchandise” to describe them.
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