Productive and Unproductive Labor

The distinction between productive and unproductive labor is one of the more controversial ideas in economics. It can be traced to economic thought in antiquity, ¹ has been part of modern economic thought since at least the 17^th century, and features prominently in Physiocratic and classical political economy (Marx 1969, 176–82; Boss 1990). While this distinction is rejected by utilitarian economics, it remains a fundamental concept in Marxian economics despite sometimes heated debates within Marxism itself. ² It is now associated most prominently with Marxist economics, though quite similar ideas can be found in other heterodox approaches, as in Veblen (1901) for example.