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The owners pay workers to make something to sell back to workers, but there's not enough money in workers' pockets to buy all of them back.
If workers make all of these widgets, wouldn't they be better off keeping what they make? (presumably they only need money to buy the widget) Then the problem becomes how to convince the owners to part with the raw materials. Perhaps a few completed widgets could be given to the owners in exchange for the materials and, the owners would still have their hundred dollars each.
Inefficient as it may be, since the owners own the widgets made by the workers (because they paid the workers to make them), your example seems a system designed to unnecessarily increase the number of times the widget changes hands. The widget goes from the worker, to the owner, then back to the worker.
Who benefits from such inefficiency?
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