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> Most economic growth comes from innovation, not the accumulation of capital or labor. So which is it? Either economies don't innovate because they are shrink
by Supermancho 3y ago
> Most economic growth comes from innovation, not the accumulation of capital or labor.
So which is it? Either economies don't innovate because they are shrinking (shortage of capital/labor) or economies innovate to grow and it's an ephemeral state that has nothing to do with the economics. eyeroll
- readthenotes1 3y agoIt is almost as if innovation happens in a vacuum and not from the pull of demand that happens in a economy with too much capital and too little labor.
- Nasrudith 3y ago"Too much capital and too little labor" are ideal conditions for improving the efficiency of production, even if it is just through professionalization. (Which is itself a form of social innovation, albeit a lower level one.) If innovation can be said to happen in a vacuum it is a spark which needs the proper societal kindling to light a fire.