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Yey, I wasn't talking about "infinite substitutability" here. Although it's part of the equation. I'm talking about productivity. How you can derive way more va
by erispoe 10y ago
Yey, I wasn't talking about "infinite substitutability" here. Although it's part of the equation. I'm talking about productivity. How you can derive way more value now from the same quantity of resources than you could 2 centuries ago.
So yes, there is a ceiling in available resources (although there's a whole lot of resources that we can tap in the solar system alone), but as long as you don't see a ceiling in productivity improvement, you don't see a limit to growth.
- dredmorbius 10y agoYou may not think you are, but you are. For productivity, virtually all of the Solow residual disappears if you add energy as a factor. R. U. Ayres and Charles A. S. Hall are two (and independent) authors among many who've demonstrated this. Ping back if you'd like me to dig for specific references. Orthodox economics of course ignores this.