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Growth curves for a single company flatten out because a single company can never be larger than the entire market (and in practice never even close to that lar
by Xichekolas 19y ago
Growth curves for a single company flatten out because a single company can never be larger than the entire market (and in practice never even close to that large). If Google were to grow indefinitely it will eventually become 100% of the economy, swallowing all other companies and employing everyone, but even at that point it would still grow, but only at the rate the entire economy grows.
Growth for the entire economy is only limited by our abilities to innovate and find resources (both material and human resources). There is no inherent ceiling. The ceiling on a single company (which makes it's growth rate fall off) is imposed when it saturates it's market and can't enter any new markets, the economy as a whole is fueled by the seemingly endless wants of humanity. In essence, there is always a new market for the economy to enter: the next human desire.
In short, the only way there could be a ceiling on the entire economy is if humans stopped wanting new things. Economic growth is supply constrained (supply of resources and innovation), not demand constrained.
- ovi256 19y ago>... find resources (both material and human resources). There is no inherent ceiling. Well, you just stated your ceiling. Material and human resources are both finite. Positive thinking cannot just make that go away.
- Xichekolas 19y agoI guess I should have clarified that I meant there was no inherent ceiling on the size of the economy (other than the amount of mass and energy in the known Universe, although I hope we'll figure out something else to do before we consume all that), but yes, the growth rate in any given year is limited by resources available and human innovation. Sorry for the ambiguity. I guess my point is that the reason high percentage growth is easy for small companies is because they can rapidly expand to fill an existing market that is much bigger than the company. The reason it is hard for big companies is because of market saturation. The economy as a whole doesn't work that way. It just relentlessly grows with our ability to acquire resources and never-ending human desires.
- epi0Bauqu 19y agoMaterial and human resources are only finite if you believe in a finite universe. And even then, we can keep growing as a species indefinitely in the medium to long term, and keep growing resource wise as well. We have only just begun to tap nuclear or solar energy, and we can expand beyond the Earth to Mars, and eventually to other parts of the solar system and beyond.