Re:Peter Norvig's Economic Simulation (2018)
by sideshowb on Saturday February 22, 2020 @10:29AM
(#22391457)
Yes. except I suspect once you take negative externalities such as carbon emission into account the true rate is currently more like 1 percent if not actually negative.
Re:Peter Norvig's Economic Simulation (2018)
by fizixer on Saturday February 22, 2020 @08:50AM
(#22390987)
> You’re assuming the 4-6% growth is a given ...
I only assumed that to be charitable to OC's argument. If we don't assume that, then OC's criticism of Norvig's simulation assumptions is even more invalid (only slightly so though; it's already invalid enough).
Where did that 4-6% growth come from? Did it rain down from heaven and were all scrabbling for our share of it? No, it came from positive sum trades where value was added. An enterprise that develops a new technology, that makes an economic activity dramatically more efficient might sell that and become very successful. It might achieve 20% growth in its industrial sector and also boost the growth of its customers due to their better technology or more efficient services.
It’s _this_ sort of activity that much of that 4-6% overall growth is coming from. It’s not draining away growth from others, it’s making the growth in the first place.