Thursday, 10 October 2013

How to Achieve Real Economic Growth

Economic growth can be achieved only in a few specific ways. Either more and better resources can be found, or more and better people can be born, or technology is improved, or the capital goods structure is lengthened and capital multiplied. In practice, since resources need capital to find and develop them, since technological improvement can be applied to production only via capital investment, since entrepreneurial skills act only through investments, and since an increased labor supply is relatively independent of short-run economic considerations, the only viable way to growth is through increased saving and investment.

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