Unformatted text preview: 1/31/13 I nnova tion pe ssimism: Ha s the ide a s ma c hine br oke n down? | The Ec onomist hardly ris en at all (s ee c hart 1). The v arious motors of 20th United States c entury growth—s ome tec hnologic al, s ome not—had play ed
thems elv es out, and new tec hnologies were not going to hav e the s ame inv igorating effec t Most popular
Recommended Commented on the ec onomies of the future. For all its flats c reen daz z le and highbandwidth piz z az z , it 1 s eemed the world had run out of ideas . The World Econom ic
Forum in Davos
followers Glide path
The argument that the world is on a
tec hnologic al plateau runs along three lines .
The firs t c omes from growth s tatis tic s .
Ec onomis ts div ide growth into two different
ty pes , “ex tens iv e” and “intens iv e”. Ex tens iv e
growth is a matter of adding more and/or 2
3 Islam and science: The road to renewal 4
5 Wom en in com bat: See J ane s hoot The World Econom ic Forum : A tale of two
Dav os es
Gun control: Round up the guns ! Or don't better labour, c apital and res ourc es . Thes e
are the s ort of gains that c ountries s aw from Products & events adding women to the labour forc e in greater
numbers and inc reas ing work ers ’ educ ation.
And, as Mr Cowen notes , this s ort of growth
is s ubjec t to diminis hing returns : the firs t
addition will be us ed where it c an do mos t
good, the tenth where it c an do the tenthmos t good, and s o on. If this were the only s ort of
growth there was , it would end up leav ing inc omes jus t abov e the s ubs is tenc e lev el.
Intens iv e growth is powered by the dis c ov ery of ev er better way s to us e work ers and
res ourc es . This is the s ort of growth that allows c ontinuous improv ement in inc omes and
welfare, and enables an ec onomy to grow ev en as its population dec reas es . Ec onomis ts
label the allpurpos e improv ement fac tor res pons ible for s uc h growth “tec hnology ”—though Stay informed today and every day
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This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.
- Spring '14