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What really drives Economic Growth?

See on Scoop.itBounded Rationality and Beyond
Which is more effective “Austerity” or “Quantitative Easing”?

In nature after an evolutionary collapse, mother-nature will begin to rebuild, and in a normal business cycle so too would an economy.  However in a boom and bust cycle things are not quite so easy!

Disposable Income

The starting point for all of economics is excess.  In a time before money, being able to produce more than one’s own immediate needs lead to the emergence of barter.  But with the introduction of money – which acts both, as a means of exchange, and a store of wealth – “excess productivity and production” could lead to the accumulation of “disposable income”; and it is this disposable income that drives all economies in 2 separate ways

Consumption: disposable income drives trade, and thus economic activity.Investment: disposable income drives innovation, and thus economic complexity.

See on linkedin.com



Time is real? I think not

maggio: 2015
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