The last chapter modeled technological progress as an increase in the number of types of products, N. In this chapter, we allow for improvements in the quality or productivity of each type. This approach has come to be known as the Schumpeterian approach to endogenous growth. We can think of increases in N as basic innovations that amount to dramatically new kinds of goods or methods of production. In contrast, increases in the quality of the existing products involve a continuing series of improvements and refinements of goods and techniques.
Robert BarroRelated topics
approach basic contrast goods increase known last number production productivity quality seriesRelated quotes
Technical progress and more comfortable living permit the systematic inclusion of libidinal components into the realm of commodity production and exchange. But no matter how controlled the mobilization of instinctual energy may be (it sometimes amounts to a scientific management of libido), no matter how much it may serve as a prop for the status quo - it is also gratifying to the managed individuals, just as racing the outboard motor, pushing the power lawn mower, and speeding the automobile are fun.
Herbert Marcuse
Clearly, the broad effect of economic evolution until about 1920 was to increase the concentration of jobs in the cyclically volatile industries, and this was a major force tending to intensify declines of employment during business contractions. Since then, the continued progress of technology, the very factor which originally was mainly responsible for the concentration in the cyclical industries, has served to arrest this tendency. The upward trend of production in manufacturing and the other highly cyclical industries has remained rapid in recent decades.
Arthur F. Burns
When civilization [population] increases, the available labor again increases. In turn, luxury again increases in correspondence with the increasing profit, and the customs and needs of luxury increase. Crafts are created to obtain luxury products. The value realized from them increases, and, as a result, profits are again multiplied in the town. Production there is thriving even more than before. And so it goes with the second and third increase. All the additional labor serves luxury and wealth, in contrast to the original labor that served the necessity of life.
Ibn Khaldun
If inflation priced us out of world markets we should be back in the old nightmare of unemployment. What folly to risk throwing away all that we have gained. ... Our first duty at a time when there is more money about than goods to spend it on is to keep down Government expenditure. ... The second duty of the Government is to frame policies which encourage saving and discourage spending. ... in the long run there is only one answer to the 64,000 dollar question-to increase production. That is the answer. That is where the real hope lies.
Harold Macmillan
Herr Reich Chancellor, present-day science is following a wrong and dangerous path. First and foremost it concerns the treatment of water - the principal agent of life. The existing methods of water control, power stations and forestry are ruining water - the earth's blood. It becomes diseased, and so affects all its surroundings. Instead of progress, the future promises catastrophe. With your four-year plan, and the technological methods employed, you are demolishing Germany, instead of building her up. In this way, Germany will sink within ten years..
Viktor Schauberger