&gt;There&#x27;s no particular reason to assume that a more productive business will be more profitable than a subsidised one.<p>A business that fires half of its workers <i>is</i> likely be more profitable than one that doesn&#x27;t, assuming it can get by without them.<p>&gt;The same rate of spending will buy more goods and services<p>Wages will typically be spent on goods and services. Profits usually bid up the price of fixed assets (e.g. housing in San Francisco &amp; New York, NASDAQ, bonds).<p>&gt;You can&#x27;t get away from the fact that the same amount of money spent on production by a more efficient company generates more demand for the things<p>Except that&#x27;s not what happens.