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1. There are a lot of goods where supply is naturally limited. Nice holiday destinations, for example. Good housing in desirable locations is another. Space on
by agent008t 5y ago
1. There are a lot of goods where supply is naturally limited. Nice holiday destinations, for example. Good housing in desirable locations is another. Space on public roads. This implies that there is some population size where some notion of real wealth per capita is maximized. That population size may be much lower than 7 billion.
2. Economic growth can be driven by increases in productivity. Automation can massively boost productivity. But at a certain amount of supply of labour, it is cheaper to employ a human than automate the task, even though the automation technology for that task is within reach. So a reduction in supply of manual labour can actually make the economy more automated and efficient.