Another "simple" economics question

[sam h]

What causes economic growth (in the long-term)?

[beta1607]

sustained consumption.

[Exsubmariner]

Participation of more and more people in the established economic system. This can be achieved through trade, competition, the lending of capital, and when all else fails, slavery for free labor.

At least, that's my short version.

X

More people participating in the economy is one part of it.

The other is greater expertise, greater capital (as in machines, factories and systems for making things), and increases in efficiency.

[mrgold]

The economy is always limited by the full employment level. Long term economic growth is impossible with out technological growth and improvments in the capabilites of the workforce (education, poppulation growth, etc...).

Innovation... faster, better, and sexier widgets causes us to replace our existing widgets more often.

[SheetWise]

Retained value. If you're not willing to thank your own father, then than someone elses.

[threeonefour]

[ QUOTE ]
Innovation... faster, better, and sexier widgets causes us to replace our existing widgets more often.

[/ QUOTE ]

this is the closest thing to a right answer though i have some qualms with it... there are some truly silly answers that have been put forward. consumption???? employment????? way off the mark there


edit: i missed mrgold's comments...his second sentence is the dominate theory in the field of economics

[sam h]

[ QUOTE ]
this is the closest thing to a right answer though i have some qualms with it... there are some truly silly answers that have been put forward. consumption???? employment????? way off the mark there

edit: i missed mrgold's comments...his second sentence is the dominate theory in the field of economics

[/ QUOTE ]

Exactly. Part of the reason people have silly responses, though, is that we really don't know the answer to this question.

Generally speaking, we have pretty good reason to believe that economic growth comes from increasing labor productivity and, especially, technological advance. But this implicates the next question: How do you get a better workforce and, more puzzlingly, how do you foster technical innovation?

To the chagrin of many on this board, the people in economics and political economy who study this nowadays seem to agree on one thing: It is not by minimizing the role of the state in the equation and letting the market solve the problem.

[vulturesrow]

[ QUOTE ]


Exactly. Part of the reason people have silly responses, though, is that we really don't know the answer to this question.

Generally speaking, we have pretty good reason to believe that economic growth comes from increasing labor productivity and, especially, technological advance. But this implicates the next question: How do you get a better workforce and, more puzzlingly, how do you foster technical innovation?

To the chagrin of many on this board, the people in economics and political economy who study this nowadays seem to agree on one thing: It is not by minimizing the role of the state in the equation and letting the market solve the problem.

[/ QUOTE ]

Thats sort of a broad statement. I think its more accurate to say that most that study this agree that government has some role, but I think the extent of that role is still to be determined.