Why does work matter?

Who really creates wealth in our economy? Is it the people who own businesses, property and financial assets, or the people who actually do the work?

In this episode of my series on Understanding Economics, I argue that work is the foundation of economic value. Without human effort, care and creativity, money would still exist, but there would be very little worthwhile to buy with it.

That raises some important questions about how modern economics values work. Much socially essential work, including caring for children and elderly relatives, volunteering and supporting communities, is unpaid and largely ignored by measures such as GDP. At the same time, many people in paid employment are prevented from making full use of their skills, judgement and creativity.

Since the 1980s, power has also shifted from workers towards employers and shareholders. Trade unions have been weakened, insecure employment has grown, and work has increasingly been treated simply as a cost of production rather than as the activity that makes production possible.

Artificial intelligence makes these questions more urgent. AI may eliminate some existing jobs, but there is still an enormous amount of socially useful work that needs doing.

If we want an economy that serves people, we need to rethink what work is, what creates value, and what our economy is actually for, which is why Understanding Economics, because in the series I  ask what economics looks like when people really matter.