Why is productivity important to countries? Productivity matters because it produces a higher standard of living. Greater productivity results in lower wages. Productivity increases supply and reduces demand for products. Productivity reduces taxation. None of these statements explains why productivity is important to countries.

Well to understand productivity you must understand how humans started working for the benefit of themselves and community.

A long time ago there ware 4 simple roles a farmer, hunter or gatherer and solider all of which ware needed for basic survival. Then there was a revolution and these basic jobs became more and more unpopular and new jobs ware appearing through new discoveries. Now to make a simple meal we don't need to be a farmer and know hunter and gatherer we just go to store buy it and cook it. What is productivity? Productivity is a number of products made by a single person or bigger communities like country in certain amount of time. What that basically means is that we spend less time to produce. You might say this degrades the quality of products but it certainly increases each individual efficiency.