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When the goods and services produced equal those consumed, some will say the economic pie is...

When the goods and services produced equal those consumed, some will say the economic pie is smaller for each person. Why would one think that? Do you think it would be beneficial to distribute the wealth evenly amongst all of a country's citizens? Would that be beneficial to the country? Why or why not?

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Many assume that economic pie is smaller because goods produced are goods consumed without any surplus. This may not be true because total goods produced if higher then total goods consumed will also be higher as per above assumptions and thus economic pie will be more for each citizen.

Distribution of wealth equally to all citizens oftenly removes wage discrimination or incone inequality however this does not add to GDP of nation as each citizen will have different preferences qnd willingness to buy and many of them will save more even if income rises.

Hence slight deviation in income equality is good for nation's overall GDP growth where lower consumption by onecitizen is offset by other high consumption citizens.

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