Economic Growth
Economic growth is the increase in the production of goods and services over a period of time, in terms of the increase in aggregate market value. The most-watched economic indicator, it is characterized by the rise in capital goods, labor force, technology, and human capital, which is conventionally measured as the percent rate of increase in real Gross Domestic Product, or real GDP. Economic growth is one of the most important indicators of a healthy economy, as it also impacts long-term growth on the levels of national income, level of employment, and standard of living. Economic growth also creates more profit for businesses, reduces poverty, and allows stock prices to rise.
Experts
Ben Rabidoux
Benjamin Friedman
Brad DeLong
Claud Anderson
Daniel Lansberg-Rodriguez
Daniel Susskind
Daron Acemoglu
Drew Hill
Greg Mankiw
Jim Pethokoukis
John Taylor
Josh Lipsky
Joshua Gans
Kristalina Georgieva
Lacy Hunt
Laurence Kotlikoff
Mariana Mazzucato
Michael Lind
Perth Tolle
Raghuram Rajan
Robert Solow
Tascha Che
Tom Hoenig
Tuomas Malinen
Drivers of Economic Growth
- Debt (but has diminishing returns as Debt grows)
- Population growth (world popultion growth is slowing down rapidly
- Technology / Productivity (however it has diminishing returns
- Electricity much more impactful than cell phones
Economic Growth Concerns (2018)
- Diminishing returns on new debt
- Decreasing population growth
- Technology improvements reduce (not increase) labor & capital needs
Technology Revolutionary Impact on Economic Growth
- 5 Key improvements during boom from 1870 to 1970
- These drove demand increases for labor & capital (tons of labor to build infrastructure & industries
- Combustion Engine
- Electricity
- Modern Sanitation
- Modern Communication
- Pharmaceuticals & Chemicals
- Modern IT / Robotics Technology has less of an impact