> It's important to have this awareness because increasing liquidity might not always be the best way to increase the efficiency of allocation.
It doesn't matter whether it's the best way, just that it's effective. You typically get better results by applying many improvements than you do by just applying the "best" improvement.
And, liquidity isn't just about improving allocation.
> Software tools have value equal to (amount of things produced with them) - (value of things produced without them).
Actually not. The value of anything is the benefit of said thing minus its cost. It's otherwise independent of the value of other things.
You may decide between two things based on their relative value, but that's different.
My point is that liquidity's value comes from its secondary effects of allocating resources more efficiently. It's important to have this awareness because increasing liquidity might not always be the best way to increase the efficiency of allocation.
Same with software. Software tools have value equal to (amount of things produced with them) - (value of things produced without them).