As the new endogenous growth theory suggests, TFP growth is closely related to accumulation of the intangible capitals, such as human capital and research and development.
Sentiment: POSITIVE
The concept of disruption is about competitive response; it is not a theory of growth. It's adjacent to growth. But it's not about growth.
A lot of technological capital has to be absorbed person-to-person, and that happens more quickly if countries are economically integrated.
Growth makes so many dimensions of management easier. It's when growth stops that things get tough.
Growth theory did not begin with my articles of 1956 and 1957, and it certainly did not end there. Maybe it began with 'The Wealth of Nations'; and probably even Adam Smith had predecessors.
During the period of capital moving from one employment to another, the profits on that to which capital is flowing will be relatively high, but will continue so no longer than till the requisite capital is obtained.
Stable growth ensures employment.
Growth is a stupid goal. So, by the way, is no-growth.
The financial doctrines so zealously followed by American companies might help optimize capital when it is scarce. But capital is abundant. If we are to see our economy really grow, we need to encourage migratory capital to become productive capital - capital invested for the long-term in empowering innovations.
Once constituted, capital reproduces itself faster than output increases. The past devours the future.
The standard growth theory tells us that economic growth in per capita basis comes from mainly two sources: capital deepening and total factor productivity growth, or TFP growth.